The official entry of the Russian army into Ukraine turned the global markets red, while gold and oil broke the records of recent times. So, why does this political crisis between the two countries affect the markets?
The long-standing tension between Russia and Ukraine has reached its peak in recent weeks with the increase in military activity. Where the West and Russia make confrontational statements, Russia that you will invade Ukraine Although Russia described these statements as a ‘provocation’ on the days when it was almost certainly reported, the expected event took place on February 22, which was not welcomed by anyone.
Russia, with the order of President Putin, decided to recognize the so-called republics in the Donetsk and Luhansk regions of Ukraine. Entered into Ukraine. At midnight on February 24, Russia extensive invasion and started bombing many cities, including the capital of Ukraine, Kiev. After this development, the markets crashed.
Latest situation in the markets:
BIST 100:
It has not been opened yet, it is eagerly awaited by all Turkish investors.
NASDAQ:
The NASDAQ stock market, where the world’s technology giants are listed, crashed when Russia started a large-scale operation in Ukraine. The situation is the same for the shares of companies.
The cryptocurrency market is also in a deep decline:
With the news that Ukraine started to bomb, Bitcoin (-9%) and the entire crypto money market suffered a great loss of value.
Oil and gold broke recent records:
Gold, which was constantly on the rise during the war declarations, took off in global markets with the news of Russia’s entry into Ukraine. $1,950 lasted until the end of June and saw the highest level since June. Again, the value of oil fed by war highest level in 7 years. reached. Brent oil reached $100 for the first time since 2014.
Let’s get to the main topic: Why are crypto, commodity or other exchanges upset due to the Russia-Ukraine crisis?
Although economists can make long explanations on this subject, it is actually possible to explain the reasons without talking at length. Many investors, especially those referred to as ‘whale’, spend their wealth in relatively risky like crypto or company stocks in order to protect their money in case of uncertainty in the environment in times of war or other crisis. by withdrawing from investments such as gold, oil safer investment vehicles prefer to transfer. As a result, while the downward trend prevails in the stock markets where the money exits; There is an increase in the stock markets that investors attack.