Us Stocks Rise Amid Geopolitical Respite

Us Stocks Rise Amid Geopolitical Respite

Stock futures gained this morning, adding to the week’s progress among the major indices, reports Reuters. Easing tension among various conflicts in Europe and the Middle East, at least for the time being, is at the heart of the progress

Us Stocks Rise Amid Geopolitical Respite
Us Stocks Rise Amid Geopolitical Respite

The S&P 500 is expected to rise for a third consecutive day, as futures ending next month rose 0.3% to 1,958.4 this morning. So far this week, the index has climbed 1.2%, and is poised for the largest one-week gain in more than a month, according to Bloomberg.

The Dow Jones Industrial Average has increased 1% this week, and the Nasdaq by 1.9%, according to Reuters.

Violence subsides on several fronts
Russian President Vladimir Putin has softened his rhetoric on Ukraine, and today border guards in the conflict-stricken region examined a Russian humanitarian aid convoy.

In the Middle East, Iraqi Prime Minister Nuri al-Maliki abdicated his office, which will allow a new regime to take on terrorist group Isis. World powers are hopeful the new federation can neutralize the threat the insurgency poses to Baghdad.

Additionally, the latest ceasefire in Gaza has held, and could be a sign that enduring peace negotiations will soon take place. Both Israeli and Palestinian officials have agreed to terms of a 5-day truce, and thus far they have honored that contract.

Renewed investor confidence
The recent lull in warfare is not the sole predictor of the futures index - consumer confidence in the US economy plays a part, as well.

"The main reason why futures are up is more to do with a relief rally and the fact that the US economy should be able to weather the storm and grow, but at a slower pace," Ion-Marc Valahu, co-founder and fund manager at Clairinvest in Geneva, told Bloomberg.

Consumer optimism is expected to rise, and investors await the Thomson Reuters/University of Michigan Surveys of Consumers today. The data is expected to show improvement and indicate a rally around the economy.

Trade with strictly limited risk
Geopolitical risk can affect your entire portfolio. Volatile regions influence the stock market, currencies and other tradable assets. You can run the risk of being stopped out, only for the market to recover and reach a level where your original trade would have been profitable.

Nadex provides binary options that allow you to hedge against the risk of political turmoil, letting you know the fixed maximum amount of potential gain and loss. Not only that, but you will never lose more than your initial investment.

This information has been prepared by Nadex, a trading name of North American Derivatives Exchange, Inc., prepared by independent third parties contracted by Nadex or reproduced form third party news agencies. In addition to the disclaimer below, the material on this page does not contain an offer of, or solicitation for, a transaction in any financial instrument. Nadex accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication.