Asian equities could trade in a defensive mood as geopolitical tensions drove the price action into the closing bell. Reports circulated that at least two people died after Russian missiles landed in NATO state Poland on the Ukrainian border, and in the wake of this Polish Prime Minister called an emergency meeting following the explosion. Traders are waiting for further details as reports also note that NATO ambassadors will meet later today at Poland’s request on the alliance’s Article 4.
The Russian Defence Ministry reported comments by Polish media and officials about the Russian missiles hitting Polish territory were a deliberate provocation to escalate the situation. Markets could turn in any signal of escalation of the case, which remains fluid at the moment. Note that the USD and US bonds went bid amid a flight to safety flows. It is also worth noting that agricultural prices were also well supported amid the supply uncertainty in the region. On the macro front, the COVID situation in China remains a major headwind for the economy and further cases, and lockdowns could keep investors holding cash.
© 2019 High Leverage FX - All Rights Reserved.
© 2019 High Leverage FX - All Rights Reserved.