Risk Assets Lacking Bullish Momentum Following Russian Atrocities NewsA quiet but mostly positive start to the week for global equities markets. Risk assets remain supported despite fears of harsher sanctions to be applied to Russia in the wake of news of the Bucha atrocities. Reports over the weekend confirmed mass civilian murders carried out by the Russian army. The incident has provoked a strong response from global leaders, likely to further embolden the economic and political sanctions being used against Russia. However, there are some concerns over the impact an all-out gas and oil embargo might have on the eurozone economy. For now at least, it looks as though markets are in wait and see mode. There are already concerns around global demand following news of China locking down Shanghai and the risk of further lockdowns in the world’s second largest economy.On the data front, we have a relatively light schedule this week. Main focus will be on US PMIs midweek, along with the meeting minutes from the March FOMC. Given the hawkish shift which took place at the meeting, traders will be keen to ascertain any further hawkish details which might help lift USD, potentially hampering equities near term. The RBA overnight took a hawkish shift also in terms of its rates outlook. The bank removed the word “patient” from its language around rate hikes, bringing forward market pricing for an RBA hike into this year.Technical ViewsDAXFor now, the DAX continues to hold against the bear channel resistance level, hemmed in also by the 14791.27 level. With both MACD and RSI bullish, the focus is on a further push higher near term with 15636.39 the next upside target for bulls. Should we slip back below 14170.79, however, the focus will turn to support at 13672.31 next.S&P 500The recovery rally in the S&P has seen the market extending the bear-channel break with price now testing above the 4575.50 level. With both MACD and RSI bullish, the focus is on a further push higher while above here with 4744 the next upside marker to note. To the downside, 4475.25 will be the next support to watch on any pull-back.FTSEThe rally in the FTSE has seen the market trading back up to test the 7558.7 level. This region continues to prove strong resistance for the index. With both MACD and RSI bullish here, the focus is on a further push higher though worth noting that momentum is waning. To the topside, 7691.6 and the bull channel top are the next resistance levels to note. To the downside, 7362.6 is the key support to watch.NIKKEIThe recent test of the channel top and the 28356.6 level has seen the Nikkei correcting lower initially. However, with price holding above support at the 24722.9 level and with both MACD and RSI bullish, the focus is on a further push higher for now with 29464.9 the next upside marker to note.
Source: Tickmill
