Rising tension between the U.S. and Russia significantly impacts global markets

News

The Kobeissi Letter recently shared on X about the current increasing tension between the United States and Russia. The geopolitical tensions come after Ukraine used 6 U.S. long-range missiles to attack a Russian military base in Bryansk. Notably, the missile strike came days after President Joe Biden gave Ukraine permission to use the U.S. ATACMS missiles on Russia.

President Vladimir Putin had warned NATO and Western countries not to lift the restrictions on Ukraine to use U.S. and European-made missiles. Putin insisted that a lift on the restrictions and any strike using such weapons would be a direct act of war against Russia.

The Kremlin leader has now reacted to the recent Ukrainian missile strike, lowering the threshold of nuclear attacks. Dmitry Peskov, Kremlin’s spokesperson, revealed that now, the Russian Federation has the right to use nuclear weapons if Ukraine uses conventional weapons against Russia and the Republic of Belarus. 

President Putin also added that any aggression against the state and Belarus by a non-nuclear state but aided by NATO members will be considered a joint attack. A point to note is that the U.S. and Russia control approximately 80% of the world’s nuclear weapons. Additionally, the Kremlin leader is the primary party with the decision-making rights of nuclear weapon use in Russia. 

The  Kobeissi Letter commented that global markets reacted sharply to signs of war escalation and growing tensions. So far, stocks, precious metals, and oil have seen significant changes after the sudden developments in the Ukraine-Russia war. 

Global indices fall significantly amid Russia-U.S tensions

Global stocks plunged after the approval of the missile strikes as investors shifted to safe-haven assets. The pan-European index Stoxx 600 traded at 497 points, 1.08% lower today. The level was the lowest the pan-European stock has reached since August. 

U.S. indices fell off the post-election rally, recording their worst week in two months. Based in the U.S., the Dow Jones Industrial Index fell by about 1%, trading approximately 450 points lower; it is now about 0.32% lower than yesterday and trading at $43,249.72 at the time of writing. The S&P 500 also dropped by around 0.5%, while the Nasdaq Composite was down by 0.2%. 

Most major cap stocks still maintained their rally. Walmart was up 4%, Nvidia was up about 3%, and Super Micro Computer rose 30%. Other stocks, including Tesla, Meta Platforms, Apple, Amazon, and Microsoft, were also up. 

Precious metals and oil prices surge amid geopolitical developments

Precious metals are thriving under geopolitical uncertainty, with gold and silver being safe-haven assets. Gold prices started surging on Monday, with spot gold rising by 0.88% at the time of writing and hitting $2,632.05. U.S. gold futures also increased by about 0.75%, reaching $2,633.8. 

Silver is up by 0.29%, at the time of writing, reaching about $31.24 per ounce. Platinum and palladium gained 0.65% and 2.78%, reaching $990 and $1080, respectively. 

Oil prices also surged, with Brent Crude and WTI crude gaining 0.03% and 0.13%, respectively. However, the price climb came after a significant drop on Tuesday morning. One of the oil rigs affected by the political unrest was the European Johan Sverdrup, which had to halt its production on Monday. 

The Japanese Yen, also seen as a safe-haven currency during political unrest, rose 0.4% against the U.S. Dollar and 0.5% against the Euro. The Japanese Nikkei Index also rose about 0.5%, reaching $38,414.

Land a High-Paying Web3 Job in 90 Days: The Ultimate Roadmap

Earn more PRC tokens by sharing this post. Copy and paste the URL below and share to friends, when they click and visit Parrot Coin website you earn: https://parrotcoin.net0

PRC Comment Policy

Your comments MUST BE constructive with vivid and clear suggestion relating to the post.

Your comments MUST NOT be less than 5 words.

Do NOT in any way copy/duplicate or transmit another members comment and paste to earn. Members who indulge themselves copying and duplicating comments, their earnings would be wiped out totally as a warning and Account deactivated if the user continue the act.

Parrot Coin does not pay for exclamatory comments Such as hahaha, nice one, wow, congrats, lmao, lol, etc are strictly forbidden and disallowed. Kindly adhere to this rule.

Constructive REPLY to comments is allowed

Leave a Reply