Ukraine Crisis and Market reaction
03-04-2014
The Ukrainian crisis was like an earthquake or volcano shook the global financial markets, but soon subsided on today afternoon.
In fact, the global Markets were tumbling on rising Ukrainian tensions, especially Moscow’s stock exchange market plunged as much as 10%.
Also, U.S.
stocks declined sharply on Monday, sliding along with other global equities, as
worries about Russian intervention in the Ukraine has investors fleeing assets
perceived as risky. Furthermore, many world investors have lost billion of dollars yesterday as global stocks tumbled the most in
a month and the Russian ruble dropped to lowest level amid Russia’s growing military presence in
Ukraine.
On the other hand, Commodities were also volatile, with Brent Crude oil rising 2% and a combination of the crisis in Ukraine and cold weather have pushed wheat costs up almost 5%.
However the Russian president “Vladimir Putin” recent comments fortunately calmed the market and investors fears. He claimed on Tuesday that there is no need for Russia to use motility force in Ukraine.
Gold
fell from the highest price in more than four months after Russian President
Vladimir Putin said there’s no immediate need to send troops to Ukraine,
lessening demand for a haven.
Also European stocks rebounded
with investors worries calmed down after Russia
scaled back troop exercises near Ukraine
that had sent markets
sliding in the previous session on fear it could provoke into war.
U.S. stocks jumped on Tuesday, with
the Dow and S&P 500 bouncing back after their worst hit in a month. Also
European stocks extended gains. on positive comments from Russian President which renewed hopes to put and end to the Ukrainian issue.
