🐂 Not all bull runs are created equal. November’s AI picks include 5 stocks up +20% eachUnlock Stocks

Marketmind: Geopolitics lurks beneath markets' still waters

Published 08/09/2022, 01:36 AM
Updated 08/09/2022, 02:10 AM
© Reuters. Plastic letters arranged to read "Inflation" are placed on U.S. Dollar banknote in this illustration taken, June 12, 2022. REUTERS/Dado Ruvic/Illustration
WYNN
-
RL
-

A look at the day ahead in markets from Alun John

The lull before U.S. inflation data affords a moment to reflect on a darkening geopolitical backdrop.

Ukraine's creditors are due to vote later on Tuesday on a government proposal to defer payments on its international bonds. Tensions remain high in Taiwan, and a Donald Trump story broke overnight - just like the old days - as FBI agents raided the former President's gilded Mar-a-Lago estate.

Ukraine's bondholders have until 5 p.m. New York time (2100 GMT) on Tuesday to decide whether to back government proposal to defer payments on war-torn country's international bonds for 24 months.

The government seems optimistic as of now.

Meanwhile, Chinese, Taiwanese and U.S. politicians continued their verbal sparring on Tuesday after the scheduled end of China's military drills around the island.

Trump said FBI agents raided his Mar-a-Lago estate and broke into his safe in what his son said was part of an investigation into the former President's removal of official records from the White House.

Markets are currently in something of a holding pattern, as investors wait for Wednesday's release of U.S. CPI data.

A high inflation print following last week's strong jobs numbers would likely put an end to speculation that the Fed will pivot from primarily worrying about inflation to fearing a recession.

U.S. benchmark 10 year yields were steady in Asia trade, G10 currencies slept and MSCI's broadest index of Asia-Pacific shares outside Japan rose a touch.

Key developments that could influence markets on Tuesday:

Politics: Deadline for Ukraine international bond holders to vote on request for two-year debt payment freeze

Kenya president and National Assembly elections

US earnings: Ralph Lauren (NYSE:RL), Wynn Resorts (NASDAQ:WYNN)

© Reuters. A globe is seen in front of Chinese and Taiwanese flags in this illustration, August 6, 2022. REUTERS/Dado Ruvic/Illustration

Europe earnings: InterContinental Hotel, Abdrn

US 3-year note auction, US Q2 unit labour costs

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.