Warning of 'excessive optimism' in global markets

Goldman Sachs strategists suggested an option strategy against the Fed rate cut pricing in the markets, stating that it was “overly optimistic”. The optimistic atmosphere in stock markets dissipated after the Goldman note. Risk appetite in the markets is low after Goldman Sachs stated that the market was overly optimistic about the Fed rate cuts. The S&P 500 completed Monday with a 0.5 percent loss after reaching the March 2022 peaks. The decline in American stock futures continues this morning. The loss also spread to Asia. The MSCI Asia Pacific index is preparing to complete its third consecutive trading day with losses. Hong Kong Hang Seng and Japan's Nikkei 225 lead the losses in Asia. The Bloomberg Dollar Index is flat at 1,240 points. The Australian dollar diverges negatively with a 0.6 percent loss after the dovish statements on inflation by the Reserve Bank of Australia, which kept the interest rate unchanged at 4.35 percent. The US 10-year bond yield is flat at 4.26 percent. The Saudi prince’s statements have not yet supported oil prices. After closing Monday down more than 2 percent after optimism about the Fed’s interest rate cuts was damaged, gold rose 0.3 percent to $2,036 per ounce. Ground operation in Gaza expands Israel announced that it has expanded its ground operations in the Gaza Strip to the south of the strip. Israeli Army spokesman Daniel Hagari stated on Monday that the attack was proceeding “house by house, tunnel by tunnel.” Hagari, who did not refer to US warnings about civilian casualties, only said that the targets were based on “precise intelligence.” On the other hand, a warning came from Turkey after Israeli Intelligence Director Ronen Bar said that they were determined to kill Hamas members all over the world, including Lebanon, Turkey and Qatar. According to Anadolu Agency, Israeli intelligence units were informed that there would be serious consequences for engaging in illegal activities in Turkey.