After Russia invaded Ukraine, the indices on both sides of the Atlantic managed to register their biggest weekly advances after November 2020. The regional Stoxx Europe 600 closed after lifting its weekly gain to 5.4%. The investors and businesspersons all around the world are closely observing the conflict. After the full-scale Russian invasion, the price of certain essential commodities have also skyrocketed, and as a result, the market is affected.
In the US, the benchmark S&P 500 managed to make a gain of 1.2% while the tech-heavy Nasdaq Composite managed to rise by about 2%. In the week, the two indices managed to enhance by about 6.2% and 8.2% respectively. There is a possibility that Moscow and Kyiv will try to proceed with a peace initiative. China is also taking necessary steps to boost its economy. Minor ups and downs are also part of the financial world. Many investors admitted that because the intensity of Russia’s invasion was fading away, the money managers are now reaping the advantage of bargain valuations in some selected sectors. The strategists are admitting that the scenes of panic outflow are present, but many investors are also coming up with second thoughts. The time has come when markets have started trading on fundamentals yet again.
Many countries are making serious diplomatic efforts to end the war but in vain because it seems Russia is not in a mood to stop. The equity markets and the commodity markets are monitoring the situation. The United States of America is also urging other global powers not to support Russia in any form. Recently, it was reported by analysts at Bank of America that investors had pulled $20bn from global equity funds. In the coming weeks it has been expected that a massive sum, almost $230 billion might come from the flow of bonds to equities. The investors and market experts are closely observing the market sentiments
In Asia, the Hang Seng index which is Hong Kong’s benchmark edged up by 0.4% lower. The Shenzhen-listed stocks and the CSI 300 index of Shanghai also managed to gain 0.7%. Due to the ongoing conflict, the price of crude oil is also fluctuating. The international oil benchmark, the Brent crude, also settled 1.2% higher. It was standing at $107.93 a barrel. The price of the spot gold was standing at $1,921 a troy ounce. Recently, oil jumped $2 as Ukraine continues to fight Russia.