Risk sentiment trades more cautious as we start the session
Risk sentiment is trading more cautiously as the session begins, with investors keeping a close eye on geopolitical tensions and economic data.
The cautious trading comes as tensions between the US and Russia continue to escalate, with the US imposing new sanctions on Russia and Russia responding with threats of retaliation. In addition, economic data from China showed a slowdown in manufacturing activity, adding to concerns about the global economic recovery.
As a result, investors are taking a more cautious approach to risk, with safe-haven assets such as gold and the Japanese yen seeing increased demand. At the same time, riskier assets such as stocks and commodities are seeing more muted trading.
Overall, the cautious trading reflects the uncertainty and volatility in the market, as investors weigh the potential impact of geopolitical tensions and economic data on global growth and financial markets.