OPINION
Market Rating Before FOMC MeetingJan 31
Russia has launched the attack, Gold hit the highest level of the last 17 years
Military operation of Russia has been started today and escalating tensions are increasing the stress levels in financial markets.
Addressing the nation, Russian President Vladimir Putin signed the decree on the recognition of the pro-Russian separatist regions in eastern Ukraine and the President noted that the Minsk agreements are no longer valid, after the Russian army killed 5 Ukrainians trying to illegally cross the border in Rostov.
On February 24, Russian army's attack into the Ukrainian border fell like a bombshell and Russian President Putin officially announced that they launched a special military operation in Donbass.
While 2 big explosions were heard in Kramatorsk in Donbas region, it was also noted that big explosions were heard in the capital of Ukraine, Kiev. It is also reported that the Intelligence Headquarters of the Ministry of Defense of Ukraine in Kiev was hit by Russian missiles and on the other side, 2 Russian commercial ships sailing in the Sea of Azov were destroyed by Ukrainian missiles.
The Ukrainian Ministry of Internal Affairs Advisor explained that the bombardments spread throughout Ukraine, and that the tanks and armored vehicles of the Ukrainian Army are advancing towards the regions where Russia is landing.
Ukrainian President Volodymyr Zelenskiy urged Putin to stop his war against Ukraine, saying the world should form an anti-Putin coalition and provide urgent sanctions, defense and financial support. Zelenskiy also shared the information that Russia crossed the border with Ukraine in four regions. Meanwhile, President Zelenskiy’s Advisor stated that there was a massive Russian artillery attack on Ukraine's infrastructure.
Reactions against Russia increase day by day. “Russia alone is responsible for the death and destruction this attack will bring, and the United States and its allies and partners will respond in a united and decisive way. The world will hold Russia accountable,” US President Biden said and noted that they will meet with the presidents of G7 countries. And US Secretary of State Antony Blinken announced that they will continue to provide assistance to Ukraine and the Ukrainians and will impose heavy sanctions on Russia.
Ursula von der Leyen, President of the European Commission, said that they will target strategic sectors for the Russian economy and prevent them from accessing technologies and markets. In addition, German Foreign Minister Annalena Baerbock stated that Russia violated the most basic rules of the international order by attacking Ukraine and that they will soon expand the sanctions. In Britain, Foreign Minister Liz Truss noted that they will implement the largest and most severe package of sanctions against Russia.
While forecasts for the duration and extent of military operations are not clear yet, aggressive risk aversion is observed in international markets. VIX index, which is considered an indicator of investor stress in financial markets, raised by more than 20 percent to 37.58 points.
SP500 lost almost 3 percent and hit the lowest level of the last 9 months and German DAX40 declined by 5 percent to 13 799, the lowest of the last 12 months. Russian index MOEX declined to 1 681, down by 50 percent. Afterwards it slightly recovered and it is around 1 681 as of 13:17 (GMT+2).
USD/Russian ruble hit the highest level of all times, 87.99, yet declined to 83.31 following the Russian Central Bank’s intervention. As a result of the increasing demand for safe-haven assets, XAUUSD gained 3.4 percent to 1974 and Brent oil hit 102.12, the highest level of the last 8 years.
Addressing the nation, Russian President Vladimir Putin signed the decree on the recognition of the pro-Russian separatist regions in eastern Ukraine and the President noted that the Minsk agreements are no longer valid, after the Russian army killed 5 Ukrainians trying to illegally cross the border in Rostov.
On February 24, Russian army's attack into the Ukrainian border fell like a bombshell and Russian President Putin officially announced that they launched a special military operation in Donbass.
While 2 big explosions were heard in Kramatorsk in Donbas region, it was also noted that big explosions were heard in the capital of Ukraine, Kiev. It is also reported that the Intelligence Headquarters of the Ministry of Defense of Ukraine in Kiev was hit by Russian missiles and on the other side, 2 Russian commercial ships sailing in the Sea of Azov were destroyed by Ukrainian missiles.
The Ukrainian Ministry of Internal Affairs Advisor explained that the bombardments spread throughout Ukraine, and that the tanks and armored vehicles of the Ukrainian Army are advancing towards the regions where Russia is landing.
Ukrainian President Volodymyr Zelenskiy urged Putin to stop his war against Ukraine, saying the world should form an anti-Putin coalition and provide urgent sanctions, defense and financial support. Zelenskiy also shared the information that Russia crossed the border with Ukraine in four regions. Meanwhile, President Zelenskiy’s Advisor stated that there was a massive Russian artillery attack on Ukraine's infrastructure.
Reactions against Russia increase day by day. “Russia alone is responsible for the death and destruction this attack will bring, and the United States and its allies and partners will respond in a united and decisive way. The world will hold Russia accountable,” US President Biden said and noted that they will meet with the presidents of G7 countries. And US Secretary of State Antony Blinken announced that they will continue to provide assistance to Ukraine and the Ukrainians and will impose heavy sanctions on Russia.
Ursula von der Leyen, President of the European Commission, said that they will target strategic sectors for the Russian economy and prevent them from accessing technologies and markets. In addition, German Foreign Minister Annalena Baerbock stated that Russia violated the most basic rules of the international order by attacking Ukraine and that they will soon expand the sanctions. In Britain, Foreign Minister Liz Truss noted that they will implement the largest and most severe package of sanctions against Russia.
While forecasts for the duration and extent of military operations are not clear yet, aggressive risk aversion is observed in international markets. VIX index, which is considered an indicator of investor stress in financial markets, raised by more than 20 percent to 37.58 points.
SP500 lost almost 3 percent and hit the lowest level of the last 9 months and German DAX40 declined by 5 percent to 13 799, the lowest of the last 12 months. Russian index MOEX declined to 1 681, down by 50 percent. Afterwards it slightly recovered and it is around 1 681 as of 13:17 (GMT+2).
USD/Russian ruble hit the highest level of all times, 87.99, yet declined to 83.31 following the Russian Central Bank’s intervention. As a result of the increasing demand for safe-haven assets, XAUUSD gained 3.4 percent to 1974 and Brent oil hit 102.12, the highest level of the last 8 years.
