🎉Three Cheers for the market🎢

It was a fightback in a swing-up session as investors pumped back into the equity market, with S&P 500 seeing its best gain of the year. Hopes are rising that there is perhaps a chance of de-escalation in tension between Russia and Ukraine. This caused the oil prices to plunge 11% for the day. 

The market might build on the tiny glimpse of hope into a consolidation zone after dropping from what many analysts called a short term oversold territory. Instead, however, WTI crude oil reversed any gain and fell to $109 a barrel after hitting as high as $130 in late Sunday. This hit the energy ETF such as XLE hard, which tumbled 3.1%. 

💰Treasury prices retreat🔭

Beyond stocks price, money was seen diverting to risker assets. For example, the 10-year Treasury price fell as the yield rose to 1.94%. After yesterday’s announcement on the restriction imposed on Russian oil, markets cheered on the fall in oil prices as sanctions seem to be on the background rather than on the forefront, which will reduce a significant portion of the oil supply globally. 

🤼Easing of geopolitical tension⚖️

Geopolitical risks eased as Russia and Ukraine agreed in principle on a temporary ceasefire, and there are signs of possibly reaching a deal between the countries. There was also a report that Ukraine is receptive to neutrality, a principle that the Russian guards with conditions attached. Finally, it was a display of “badminton” politics as each player aimed to outwit with each “smash” but came to a reality that perhaps a “draw” in the endgame is reachable.

💸Bitcoin to the moon💎

Cryptocurrency rallied, too, as there was a relief on Biden’s executive order. Instead of harsh treatment on the virtual currency, the executive order seems to support the idea of digital assets and ensure that the US is a leader in the field. This is sufficient to remove an overhang on the asset as we see buying momentum throughout the day. 

While the rally continued, Pika World continued to maintain exposure to the equity market at the current level while increasing exposure to the alternative asset.