Possible Russia-Ukraine Progress Emboldens Futures
The Russia-Ukraine war has been in the spotlight of the economic world ever since it’s started. Many companies are pulling out of Russia, causing their value to increase or decline based on their market presence. On the other hand, Russian stocks are plummeting, and the companies can do very little to stop the decline. Furthermore, the rouble is in disrepair, with numerous measures to strengthen it introduced by the Russian government. The sanctions have also taken a toll on Russian everyday life, limiting payment systems and cutting out essential services.
However, while the tragedy has also pushed down global stocks, there seem to be some hopes for a resolution. As Putin released a statement that said he’s seen the negotiations with Ukraine develop positively, the markets had a runback. S&P 500 immediately jumped to 1.3% in premarket trading, demonstrating the hefty impact of the conflict on global markets. The two other leading US indices, the Dow Jones Industrial Average and Nasdaq-100, also showed similar futures gains. Both were up by more than a whole percentage point, with Dow growing 1.1% and Nasdaq 1.6%.
These inclines follow a sharp drop on Thursday and represent the indices regaining some recently lost ground. However, the gains are not final, and news during the day may cause them to dissipate.
During the past few weeks, it’s apparent that investors’ eyes were laid closely on the news surrounding the conflict. Of course, it’s only natural for such a massive conflict to cause equally as massive shakeups on the global markets. The recent positive development came as Putin expressed a degree of content with news from Russian negotiators. Market-wise, we predict the situation will remain somewhat unstable in the following period. As even slight developments can cause significant shifts, investors are bound for some stress in the recent future.
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