Now: Risk Aversion Continue for the 2nd day
Safe-Haven Outperform Again
Risk aversion sentiment is still lingering in the markets with both Yen and Greenback become the best performer. Most of the concerns are towards the lockdown in China, the tension between Russia and Nato, the ongoing Russo-Ukraine war, the global growth which slowly down the slope and the monetary policy from many central banks worldwide.
Lockdown in China
The lockdown in China especially the major city that main source economy become a headache for investors. Most production come to halt and the risk of the continue lockdown is still on the air. Traders worry if this goes on, it will affect the supply chain for major goods and tumbling the global economic growth again.
The Geopolitical Tension
The tension between 2 majors’ power, Russia and NATO increasing by day on both front economy and military. With no sight of the conflict ending soon, the economy become worsening with the sanction impose by US to Russia. People are worried if this situation not settled soon, it would escalate to the point where the damage no longer reversible.
The Monetary Policy by Central Bank
Because of very high inflation rate among all the countries in which mostly because of the injection fund to help boost growth during the pandemic, central banks all around the world are starting to tighten their monetary policy. The main concern, with the growth start to decline, if the policy tightening too fast will stumble more on economy growth.
27 April 2022