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Nikit Shingari says, Due to uncertainty as no one knows what can happen over the weekend the aggressiveness of the Russian has been on the high rise. With the current prediction, if there is any peace talk coming, the ten years note yield may rise from 10 to 15 basis points.
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In The Russian-Ukraine War, Is the Stock Market Falling Down? Nikit Shingari
If you are very conversant with what is happening around the world, then you should have heard of the Russian-Ukraine war. The war has been on for quite a while now with different companies and people trying to protest against the act. Some companies are already saying goodbye to Russia due to their act of war and others are planning to follow suit if the war persists. This means the economy of Russia, as well as the stock market, will be affected.
As there is no end in sight in the Russia-Ukraine invasion, the rise in the price of oil has led to the crash course of the stock market. Due to the current war, the ban on the importation of Russian oil and gas has made various commodities prices rise. Raw materials like wheat, metals e.t.c have upped. With the current occurrence, the stock market has been turbulent.
The price of palladium cannot be overemphasized as oil and gas prices are not the only ones affected. With the current invasion, the price of palladium has increased to $3440 per troy ounce. To understand palladium better, it is used for catalytic converters. This device is fitted into car exhaust to emit harmful emissions. Russia is responsible for about 38% of the global percentage of Palladium production.
For some days now due to the rise in the price of oil and other commodities the stock market has been affected as investors are considering other trading options like bonds. The oil spike continues to rise and this has affected the United States of America. Recently in Califonia, the oil price is about $5 (the highest price in the country) consumers are already shedding more money.
Due to uncertainty as no one knows what can happen over the weekend the aggressiveness of the Russian has been on the high rise. With the current prediction, if there is any peace talk coming, the ten years note yield may rise from 10 to 15 basis points, Nikit Shingari says.
As the price of commodities continues to rise there is every possibility inflation in the eurozone will also increase to about 5% during this period. From the beginning of 2022, the European stock markets have dropped and with the Russian-Ukraine invasion, the stock market might continue to drop.
In the short run, uncertainties arise as no one knows what will happen next. There might be lots of falling rising in its economy. Russia may eventually be uninvestable for more than a year. Investing in Russia for the next one year will be at high risk. Contact us anytime!
The United States is well empowered to depend less on Russian energy. Europe will also find a way to get energy and depend less on Russia.
Other countries that are dependent on their commodities will have to find other ways to fend for themselves. Investors are also pulling out because of the high risk? The question now is, won't the stock market have a large downturn in the current Russia-Ukraine invasion? says NikitShingari.
