Markets May Digest Geopolitical Tension, Says XM Australia's Peter McGuire

Markets across the globe are likely to brush off any rise in tension on geopolitical front, XM Australia Chief Executive Officer, Peter McGuire, told NDTV Profit.

McGuire is aware of the developing situation in Ukraine. Markets are seeming to brush off the development on that side, he said.

In years gone by, this could have really wretched markets up. But, at this moment, it's not gaining traction, he said. However, the situation can change very fast. If something happens in the next 24 hours, that'll be felt in the markets, according to him.

Despite recent volatility, markets are seeming to trade within range. It gets sold off, and then all of a sudden, it booms on the upside, McGuire said.

At the moment, it's bearish and it may take a run off again, he added.

Tariff from the US is going to be really hard for small and medium enterprises in China. It's going to be crippling for the country, moving in to the first quarter and second quarter, which will be tough, McGuire said.

Trump trade is still in the high and is likely to continue. In the run-up to Christmas, it remains to be seen whether markets will blow off some steam from current levels, McGuire said. 

For Gold, there is likely to be a boom on the upside due to the geopolitical tension. As far as Copper and Aluminum is concerned, the former is languishing. Aluminum has taken a bit of run, he said.

Market participants may like to keep an eye on gold and silver, McGuire said. There's going to be factors which will drive prices high like the US Federal Reserve's policy and geopolitical tensions, McGuire said.

It's a backward way to withstand correction. The dollar index is hovering around 106 level. As far as the interest rates by the US Federal Reserve is concerned, there's a 60% chance of a rate cut, which take a bit of steam off from the US dollar. The volatility will remain in the Japanese yen, according to the CEO.