Russia - Ukraine Conflict

Russia - Ukraine Conflict

Russia - Ukraine Conflict

Recent days we hear and receive a lot of news from Russia and Ukraine. Some people say Russia will attack and some others say that Russia won't attack. But the markets are already pricing the worst case scenario especially in Russian Stock Markets. Let's get into some details. Ukraine's Government wants to be closer to Europe in all aspects. Military engagements and even membership of NATO is a possibility for the Ukraine Government. But Russia is telling them this is not a possibility and Russia doesn't want NATO on its borders. Another problem is the Donetsk Region of Ukraine wants independence and even annexation to Russia. Of course the Ukraine Government doesn't want to repeat its mistake in Crimea. 

These are the reasons for the conflict but what are the consequences? And who supports Ukraine? Who is against this possible invasion? There is no winner in any war so both sides will suffer from this conflict for many years. But Russia seems to be suffering more as many developed countries are threatening sanctions. US, Europe, Canada and UK have expressed their support to Ukraine and possible sanctions. The only important country in this puzzle that didn't speak so much is China. Of course they don't want any instability in their region. Russia is an important energy supplier of China and also one the biggest customer for its trade goods. They also focus on the Beijing Winter Olympics so they don't want a war while they are focused on that. 

How about the markets? Especially rising GOLD and SILVER prices recently are all because of this conflict.  Gold and Silver are commonly considered to be a safe haven in times of financial or political uncertainty, since it is not at risk of becoming worthless, unlike fiat currencies or other assets bearing credit risk. Oil and Natural Gas are other commodities at risk as Russia is one of the biggest producers. If countries claim sanctions against Russia, the production of these energy sources will be lowered. Oil market already has a tight supply. It will create more pressure and we may see fast bullish rallies in Oil and Gas. The stock markets will most probably will decline fast as they will prefer less risky assets. 

As you see there will be a lot of volatility in the markets if Russia decides to attack. Nobody wants a war as there will be a lot of casualties. But if that happens and you can't avoid it then you should benefit from the volatility of the market. With Gann Markets you can invest in all these instruments above and you can buy or sell to make profit. 

Open your account today and start trading with Gann Markets. Don't miss the opportunities.

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