Putin's order to continue the military advances in Ukraine cannot help the global recession and sky-high inflation.
While the US market was closed due to the Independence Day holiday, positive sentiment in Asia encouraged market bulls. It is expected to continue more today in Asia and globally.
Getting close to the US election, affecting governors' decisions and market movements. Inflation fears and concerns about more mistrust of the Democratic Party forced President Biden to delay the implementation of import tariffs from China. However, President Putin's order to continue the military advances in Ukraine, even after taking complete control of "Luhansk," prevents further optimism. Continuation of the war cannot help the global recession and sky-high inflation. A combination of these concerns and good news, such as the phone call between Chinese vice-premier Liu He and US Treasury Secretary Janet Yellen, was a little bit positive for the stock markets and helped them regain some of their vast losses.
Besides geopolitical news and events, economic data from China and Japan shows that service sectors increased rapidly to help the GDP growth. A survey shows China's services activity has increased faster for almost a year. In Japan also Service sector was experiencing its fastest growth in eight years as Covid-19 lockdowns eased in both countries.
On top of all mentioned reasons, fears of economic recession have caused market participants to doubt the central banks' stricter monetary policies, which is now positive news for them.
If we look at SP500 as the overall market representative, we can see that downtrend is losing steam and if the asset can recover itself above its R1 and R2, respectively, at 4,100 and 4,300, we can bet on another bull-run.
