Better risk sentiment benefited stocks – Danske Bank

FXStreet (Edinburgh) - Chief Analyst Pernille Nielsen at Danske Bank reviewed the recent performance from the stock markets.

Key Quotes

“The equity rally in Europe continued in the US with S&P500 closing up 0.3%”.

“The move higher followed as sentiment had improved due to the waning geopolitical tensions,which was further supported by an agreement for an international humanitarian convoy with participation of the EU and Russia”.

“However, at time of writing NATO expresses concerns of a disguised invasion as it has just been announced that a Russian convoy with 280 heavy trucks containing humanitarian aid for Ukraine has departed from Moscow”.

“The risk-on sentiment remained although there has been news that the political crisis in Baghdad escalated as the Iraqi Prime-Minister Nouri al-Maliki refused a transition to the Obama-supported Haidar al-Abadi, who might better unite the different ethnic groups of Iraq, as his successor”.

“Maliki has further increased the presence of troops and militia in Baghdad, which has spread a sense of crisis in the capital”.