Economic Update – “Ukraine”

/ / Market Update

Last month we noted that the year had commenced as expected with a higher level of volatility as markets adjust for anticipated interest rate increases and inflationary pressures. Russia was building its troop numbers on the boarder of Ukraine with clear intention to invade. Russia has now invaded Ukraine and the ‘West’ has reacted by imposing significant sanctions while trying to avoid direct conflict with Russia.

 

The escalation of geopolitical tensions including the Russian invasion of Ukraine is indicative of the end of the stable geopolitical period we have enjoyed recently. The immediate impacts from the invasion have caused some concern that the US Fed may delay the first anticipated interest rate hike. Certainly, expectations of the magnitude have reduced, a 25bpt rate increase is widely anticipated based on recent testimony from Jerome Powell.

Follow the link to read the full article. 220309_NewsFeed_RoystonCapital.pdf (112 downloads)