What you should take care of on Friday, February 25:
Panic gripped financial markets as Russia launched a military attack on Ukraine. Moscow attacked not only the Donbass region, but approached Kiev during US business hours. Russia ignores global sanctions and appears determined to take full control of Ukraine.
A nuclear waste storage facility in Chernobyl, Ukraine, was destroyed after Russian forces entered and fighting broke out, an adviser to the Ukrainian Interior Ministry told NBC. The adviser warned that radioactive dust could cover the territories of Ukraine, Belarus and the EU.
Russian President Vladimir Putin said they had no choice but to act differently as all previous attempts to change the situation were unsuccessful. He added that Russia remains part of the global economy and does not plan to damage the system to which it belongs.
However, the whole world condemned the situation and announced sanctions against Russia. The UK has been among the most aggressive, as UK Prime Minister Boris Johnson pushed for Russia to be kicked out of the SWIFT system. Earlier in the day, Johnson said the UK would provide defensive weaponry to Ukraine while doing its best to keep Britain safe. In addition, he said the kingdom will agree with allies “a massive package of economic sanctions designed in time to hamper the Russian economy.”
NATO Secretary General Jens Stoltenberg said Thursday that Russia is using force to try to rewrite history, Reuters reported. Among other things, he said the body would deploy “capabilities and forces, including the NATO Response Force,” adding that they would do whatever is necessary to protect the alliance from aggression.
French President Emmanuel Macron said Russia’s deliberate choice to attack Ukraine violated UN rules, adding that France stands by Ukraine and the country will respond “without weakness” to this act of war. Finally, he pointed out that the sanctions against Russia would take into account the energy sector.
US President Joe Biden announced a series of sanctions against the Russian institutions and people, with the aim of maximizing the long-term impact on Russia and minimizing the effect on the rest of the world. Finally, the European Council agreed to further restrictive measures that will impose “massive and severe consequences” on Russia for its actions.
Gold soared to $1,974.40 a troy ounce, its highest level since September 2020. The metal pulled back and plunged to the current price zone of $1,880.00 during US trading hours, where it currently stands, as market players canceled fear-related trades following US President Biden’s statement.
Meanwhile, Fed Raphael Bostic signaled that Fed policy is ready to return to a more normalized stance. Among other things, he added that he is “very open” to making more than 3 rate hikes this year.
EUR/USD has recovered from a fresh 2022 low of 1.1105 to currently trade around 1.1200. GBP/USD hovers around 1.3400 as commodity-linked currencies also lose some of their intraday gains
Crude oil prices also fell into negative territory after hitting multi-year highs. WTI was trading as high as $100.50 a barrel, and is now changing hands at around $92.20.
Wall Street trimmed most of its intraday losses, with trading mixed before the close. The Nasdaq Composite is the best performer, down more than 200 points after losing about 4% earlier in the day.
Source: Fx Street
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