According to Evan Lucas, market strategist at IG, positive momentum could be here stay, although he acknowledged that geopolitical risk would continue to lurk in the shadows.
"Conflicts are cooling, and the risk-off events of the past two weeks may see upside risk as de-escalation spreads across the conflicts," he said.
"However interim disruptions similar to that seen last week are very possible. Geopolitics is never far away from interrupting a market's momentum," he added.
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Lucas said the U.S.Federal Reserve's monetary policy would continue to be a positive driver for global stocks, due to his view that the central bank will keep rates lower for longer, despite rising concerns that stronger U.S. economic data could prompt a sooner-than-expected rate hike.
"On a medium-term basis we still see the Fed as behind everything; it has been proven right consistently over the past month on its views on employment slack. The conclusion is that it will follow a very structured path on the raising of rates over the coming years and low rate borrowing will drive investment into the market," he said.
In addition to the military conflict between the U.S. and Iraq which came to a head last week, the Ukrainian conflict - which started rattling markets late last year - moved into its final stages over the weekend. Rebels suggested a ceasefire on humanitarian grounds, while Ukraine is demanding rebels surrender before aid is sent in.
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A Russian invasion of Ukraine remains an ongoing threat, although the U.S., U.K. and German political leaders have all warned Russia that any intervention in Ukraine would violate international law.
"Surrender is looking likely and this could alleviate the markets' concerns," said IG's Lucas.
Meanwhile, in Gaza another 72-hours ceasefire has begun and negotiations are underway in Cairo with the aim of ending the conflict which has now been going on for a month.