Daily Alert – Tuesday 22nd February 2022: Markets calm in face of Putin’s moves

Mark NugentDaily Alert, Feb 2022

Daily Alert – Tuesday 22nd February 2022: Markets calm in face of Putin’s moves

Good morning.

The markets have reacted calmly, although negatively, to Russian President Putin’s decision to formally recognise two self-proclaimed separatist republics in Ukraine. Equities are down but now rising; GOLD was up and is now falling; oil is up; the JPY was rising and is now falling. So, that says “concerned but calm” to me.

Needless to say, the media and, sadly, our politicians are being hysterical. Ukrainian President Zelenskiy urged calm, saying Putin had merely “legalised” troops already present since 2014. He assured his citizens that his country’s borders were safely guarded and that there was “no reason for your sleepless night”. It doesn’t make any sense to be more concerned than the Ukrainian President.

There are clear signs of risk-on sentiment at this early stage in the day. US equities have made up the gap-down that occurred between last night’s early closure and today’s re-opening. I will watch the developing sentiment closely and avoid the mainstream media.

We’ll be back tomorrow.

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