The geopolitical crisis between Russia and Ukraine continues to be a world headline with Russia warning of an attack on Ukraine, further strengthening expectations of rising energy costs and world inflation.
In addition, Asian stock markets declined while oil prices soared.
Summary of the Geopolitical Crisis
Russia has increased its troops in Belarus while satellite images show several military deployments on the Ukrainian border.
In addition, French president Emmanuel Macron will hold a meeting with Russia at the Organization for Security and Co-operation in Europe on Monday.
The Lost Market
S&P 500 futures fell 0.6% and Nasdaq Composite futures were down 1.2%.
MSCI’s broadest index of Asia-Pacific stocks outside Japan fell 0.4% while Japan’s Nikkei lost 1.9%.
A survey by global fund managers from Bank of America (BofA) confirmed a bearish change as cash holdings hit their highest level since mid -2020.
In addition, the prospect of more aggressive tightening by the Federal Reserve (Fed) to curb inflation added to the woes of investor sentiment.
As a result, the short -term treasury reduced the losses recorded last week while the 10 -year yield fell 1.92%.
As for the currency market, the dollar index last traded at 96,100 from a peak of 97.441.
The euro remained at $ 1.1317 however it was vulnerable to the geopolitical crisis and safe-haven the Japanese Yen at 114.91, threatening support at 114.78.
Gold prices hit a 9 -month high of $ 1,903 an ounce.
Oil prices affected by the geopolitical crisis saw an overall 2% increase with Brent crude oil hovering $ 1.22 at $ 94.76 and US crude oil reaching $ 1.76 at $ 92.83.
