Two years since Russia’s invasion of Ukraine: where do we stand?
24 February marks two years since Russia launched its full-scale invasion of Ukraine. While the initial spike on markets have subsided, many have moved in ways that investors could not have predicted.
(AI Video Summary)
USD value goes down as Fed may delay rate cuts
Over the past two years, there have been some interesting changes in the global markets. Even though there have been wars and worries about a recession, the economy in the United States has remained strong. This has led to the belief that the Federal Reserve (the Fed) will delay any rate cuts. As a result, the value of the US dollar has gone down.
Recently, there has been some good news about manufacturing in the US and Europe. This is important because it has given the Fed even more reasons to hold off on rate cuts. Essentially, the market is optimistic about the future and doesn't want the Fed to make any changes that might slow down economic growth.
Impact of Russia-Ukraine war on global markets
However, when Russia invaded Ukraine, there was a noticeable reaction in the markets. For example, the prices of agricultural commodities like corn and wheat went up when Ukraine was invaded. But now, those prices have gone back down. This is because there is plenty of supply available, so there's not much room for prices to go much higher. In other words, there's enough of these commodities to meet the demand, so there's not much reason for prices to keep going up.
Throughout the past year, there have been lots of stories in the news about Ukraine and Russia. But it's not just about wars and politics. There have also been stories about companies like NVIDIA, which has seen its value grow in the market. This shows that the global markets are influenced by both big events in the world and economic factors.
In summary, the global markets have gone through some ups and downs because of things like wars and economic conditions. However, even in uncertain times, there are still companies that manage to grow and succeed. It's important to pay attention to all of these factors when thinking about trading and investing.
This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.
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