The primary reason for the appearance of risk on is trading houses etc using it as a buy on the dip opportunity, calculating this is a good pivot regardless of further selling because price will return to this point in stocks eventually. Very calculated but you must bear in mind their approach is broader overall. This is still a heightened risk off environment. Give it time. If I am wrong, it means geopolitical tension, the kind that means world war, is not present.
I am not the only one who sees that it is present and extremely heightened.
There is a little market reaction to comments from the US that (We/They/Them) will not retaliate to a hard Russian response slowly creeping into markets but one might think it will not stick in coming hours. Overall stocks will go on an uphill run in 2025 but this is a little dicey in this spot. That would be risk off for the moment.
News algos rescting to headlines… this one eased some of the Russian threat fallout

Source: Newsquawk.com
Buying EURUSD while tensions with Russia are rising is not logical.
Russian Foreign Minister Lavrov in response to Ukraine’s attack against Russia border region with US made ATACMS missiles, says it is a signal they seek escalation
Source Newsquawk.com
NEWSQUAWK US OPEN
Risk off sentiment as Russia’s Kremlin suggests nuclear response
Good morning USA traders, hope your day is off to a great start! Here are the top 4 things you need to know for today’s market.
4 Things You Need to Know
Equities are entirely in the red with sentiment hit following remarks by Russia’s Kremlin, which said “Russia reserves the right to use nuclear weapons in an event of aggression”.
Dollar is firmer vs most peers, but weaker against the JPY which caught a bid owing to its safe-haven status.
Bonds have soared to session highs following comments by the Russian Kremlin that it could respond to aggression in a nuclear manner.
Crude is on the backfoot, XAU bid given the risk-off environment.
© 2024 Global View
