The conflict between Russia and Ukraine has attracted international attention, with Putin’s government amassing troops on the border this week and launching military exercises, while the United States and its allies warned that Moscow would face unprecedented attacks if it attacked Ukraine. Sanctions strike. The Ukraine crisis has hit the investment market across the board, and the industry expects that geopolitical volatility will reduce the market’s risk appetite, leading to increased investment volatility.
Ma Bin, an associate researcher at the Center for Russian and Central Asian Studies at Fudan University in Shanghai, believes that whether Russia, the United States, and the European Union play a game around Ukraine and whether the crisis will escalate mainly depends on whether the strategic and security coordination between Russia, the United States, Europe, and NATO can make progress. If there is progress, then tensions will briefly ease.
The Russian stock market led the decline this week, the three major US stock indexes opened lower, and all major European stock indexes fell into a slump. The industry pointed out that financial assets fell due to the conflict between Russia and Ukraine. Therefore, it is easy to trigger a sudden drop in the stock market. And safe-haven assets such as gold are likely to move higher.
Kang Shuiyue, chief investment officer of Shenzhen Danyang Investment Co., Ltd., told 21st Century Business Herald that due to strong capital mobility and a keen sense of smell, the regional political and military crisis will definitely affect the short-term trend of the capital market. If the impact is larger, it will affect the medium-term trend of the stock market for more than one year. Combined with the expectation of the Fed raising interest rates, the net inflow of funds to the global stock index this year may be lower than expected. On the other hand, the spread of the CCP virus variant Omicron is also “stretching” the negative impact of the global CCP virus epidemic on the stock market. In general, the performance of asset prices this year may be much worse than last year. Investors should be vigilant and prepare for “winter” at any time.