NEW YORK/LONDON, June 25 (Reuters) – Some investors are eyeing the knock-on effect of the end of Saturday’s uprising in Russia, with U.S. Treasuries and U.S. dollars expected to hit the market late Sunday when markets open. expected to move to safe haven assets.
A group of heavily armed Russian mercenaries led by Evgeny Prigozhin, former ally of President Vladimir Putin and founder of the Wagnerian Army, advanced most of the way to Moscow after capturing the city of Rostov, but then stopped advancing. and mitigated the escalation of the great challenge. On Saturday night they began to withdraw from the occupied Rostov military command, according to Reuters eyewitnesses.
Financial markets have often been volatile since Russia’s invasion of Ukraine in February 2022, creating fissures across markets and global finance as banks and investors scramble to eliminate exposure.
Following Saturday’s events, some investors said they were watching the potential impact on commodities prices as well as safe haven assets such as U.S. Treasuries, given Russia is a major energy supplier.
“Certainly it remains to be seen what will happen in the next day or two, but if there remains uncertainty about Russia’s leadership, investors will be more likely to see it,” said Gennady Goldberg, head of U.S. rates strategy at TD Securities in New York. could congregate in safe havens,” he said.
Despite the easing of tensions, “investors may remain nervous about the ensuing volatility and remain cautious,” Goldberg said.
The move drew global attention and resurrected old concerns in Washington about what would happen to Russia’s nuclear stockpile in the event of domestic chaos.
Quincy Crosby, chief global strategist at LPL Financial, said “markets are generally less responsive to ongoing and uncertain events,” especially those related to Putin and Russia. rice field.
“When uncertainty rises, Treasuries bid, gold bids, and the Japanese yen tends to rise in such circumstances,” Crosby said, adding that investors buy when risks rise. You mentioned a typical safe-haven asset. .
Alastair Winter, global investment strategist at Argyle Europe, said markets may not react much right now due to the easing of tensions, but “Putin is clearly weakened and there will be more developments.” .
He said the dollar could get “some support as markets return to speculation about rate hikes, rate cuts and recession in other economies.”
With stocks mostly trending upwards over the past few months, some say they could be even easier to fall in the future. The S&P 500 (.SPX) is up 13% this year, but has lost momentum in recent days as interest rates have been the focus. Federal Reserve Chairman Jerome Powell testified last week, suggesting further interest rate hikes.
Some people showed little reaction as the situation seemed to calm down. “Markets will treat this as a new geopolitical risk,” said Rich Steinberg, chief market strategist at Colony Group in Boca Raton, Fla. will calm down,” he said.
Reporting by Lanang Nguyen, Sinead Cruz and Megan Davis. By Megan Davis.Editing: David Gregorio
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