Markets stabilise

Markets steady but unease remains

We’re seeing a little bit of positivity back in the markets on Wednesday but there’s still plenty of underlying unease amid a mixed bag of earnings and rising uncertainty.

Earnings season will continue to be a core focus for investors, despite the wide array of other factors that have been dominating market sentiment for months. It has gone quite well so far but it’s clear that there are some big challenges ahead which explain why we’re not seeing the lift we may otherwise see.

And when Russia is cutting off gas supplies to Poland and Bulgaria in response to their refusal to pay in roubles, following Putin’s decision to change the terms of payment, you can understand why. This may be a warning sign to others in the hope that they don’t follow suit but if they do, the standoff could play havoc with energy prices.

It will also continue to be a headwind for European stock markets as a result of the bloc’s heavy reliance on Russian gas. The weaponisation of gas was long seen as an unlikely last resort but now the Kremlin has got the ball rolling, the risk has become significantly greater which could pose a massive economic threat to the EU.

This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.

Craig Erlam

Craig Erlam

Senior Market Analyst, UK & EMEA at OANDA
Based in London, Craig Erlam joined OANDA in 2015 as a market analyst. With many years of experience as a financial market analyst and trader, he focuses on both fundamental and technical analysis while producing macroeconomic commentary. His views have been published in the Financial Times, Reuters, The Telegraph and the International Business Times, and he also appears as a regular guest commentator on the BBC, Bloomberg TV, FOX Business and SKY News. Craig holds a full membership to the Society of Technical Analysts and is recognised as a Certified Financial Technician by the International Federation of Technical Analysts.
Craig Erlam