Behind the Global Market Surge: Analysis of Multi-Asset Driving Factors

Yesterday, the global market showed a prosperous scene of widespread gains. The US dollar index soared, successfully reaching a new high; Bitcoin also did not lag behind, steadily climbing towards the high of 100,000 US dollars;

Gold broke through the 2,660 US dollar mark and successfully stood above the 50-day moving average; US crude oil prices also performed excellently, successfully breaking through 70 US dollars; the three major US stock indices were all in the green, showing a strong upward trend.

Such a large-scale market synchronized rise might seem like the “second wave of the Trump rally” at first glance, but in reality, the performances of different markets are driven by various factors.👗＋: Vir4400

1. Driving Factors of Dollar Appreciation

The continued rise of the US dollar is mainly attributable to strong support from economic data. After a series of positive economic data were released, market confidence in the dollar greatly increased, driving the dollar index to strengthen continuously, occupying a more favorable position in the global currency market.

2. The Driving Forces Behind the Rise of Gold and Crude Oil

The rise in gold and crude oil prices is primarily due to the escalation of the Russia-Ukraine conflict. The intensification of geopolitical tensions has triggered a surge in market demand for energy supply stability and safe-haven assets.

As a traditional safe-haven asset, gold naturally rises with the warming of market risk aversion sentiment;

On the crude oil side, concerns about the potential impact of the Russia-Ukraine conflict on global crude oil supply patterns have driven oil prices to rise sharply.

3. The Driving Force Behind the Stock Market Rise

The strong performance of the US stock market has largely benefited from Trump’s trade agenda.

The advancement and adjustment of his trade policies have created a more favorable business environment for related companies, enhancing market expectations for corporate profit prospects, thereby attracting a large influx of funds into the stock market, pushing all three major stock indices higher.

In summary, although the global market showed a general upward trend yesterday, a deeper analysis reveals that the driving factors behind each asset class are indeed quite different.

When investors conduct asset allocation and market analysis, they must fully consider the impact of these different factors to make more precise and reasonable decisions.