As the financial world slowly stirs back to life after a long holiday weekend for many, markets are still shaking off the cobwebs, particularly across key global hubs. While headlines might point to specific commodity movements, like oil’s recent gains on Middle East tensions, the broader equity landscape has remained notably subdued.
This isn’t entirely surprising given the widespread holiday closures that have impacted trading volumes and investor sentiment. Across Asia, the vibrant celebrations of the Lunar New Year have seen both Mainland China and Hong Kong markets completely shut down. This extended break means a significant portion of global trading activity has been on pause, contributing to the generally tepid stock performance observed elsewhere.
Meanwhile, in North America, US markets are preparing to fully reopen on Tuesday, having observed the Presidents’ Day holiday on Monday. This long weekend for American traders further compounded the lower activity levels, creating a quieter start to the week than usual.
With major players out of the picture, liquidity tends to dry up, and significant moves become less common – unless, of course, a strong geopolitical factor, such as developments concerning Iran, pushes a specific sector. As markets slowly return to full strength, traders will be keen to see if the holiday lull has set the stage for any pent-up activity or shifts in sentiment in the days ahead.
Source: Original Article
