Market Risk On But The Tragedy Of The Morning Changed The Position Of Investors


 Equities had their best moment with weak producer price index (PPI) data giving them an edge, but news of a Russian missile that hit Poland and resulted in 2 deaths rattled investors.

During the New York session, stocks re-entered the rally with Treasury yields falling after PPI data saw an increase of 0.2% in October which was the same reading as the previous month while the market forecast was for 0.4%.

On an annual basis, PPI is seen growing 8.0% but down from the previous month's 8.4% and missing market forecasts of 8.3%.

The latest data, flanked by last week's United States (US) inflation reading, strengthened investors' hopes that the Federal Reserve (Fed) may be less aggressive with its tightening policy.

As a result, the Dow Jones Industrial gained 0.17% at 33,592.92 while the S&P 500 gained 0.87% at 3,991.73 and the Nasdaq Composite gained 1.45% at 11,358.41.

However, the situation seemed to change early this morning with the news of an explosion in a village near the border of Poland and Ukraine that claimed 2 lives and has clouded the crisis of geopolitical tension.

The White House reported that the incident occurred as a result of the launch of 2 missiles and the Russian side denied its involvement in the attack.

As a result, stocks in the Asian region opened mixed with Japan's Nikkei 225 and Topix flat while South Korea's Kospi was high and Kosdaq added 0.13%.

In Australia, Australia's S&P/ASX 200 index slipped 0.22% and the broader Asia Pacific MCSI gauge was flat.

Comment Marc Chandler from Bannockburn Global Forex, the market can still be considered risk-off with the Russian news seen drowning the positive input in the US.