Global Markets React to Escalating Geopolitical Tensions

Global markets saw substantial movements as geopolitical tensions between Russia and Ukraine escalated. Gold, oil, and haven assets registered strong gains, while the euro and European equities faced pressure. The U.S. dollar surged, impacting currencies worldwide, amid shifting bets on monetary policy and trade concerns.

Global markets experienced significant shifts this week, driven by escalating geopolitical tensions between Russia and Ukraine. Haven assets such as gold and oil saw strong gains, with gold climbing 5.4% and Brent crude rising 4.5% over the week.

The strain on the euro was visible as the currency hit its lowest level since December 2022, amid poor economic data and rising European gas prices. The U.S. dollar surged to a two-year high, further pressuring other global currencies.

The European Central Bank faces increasing pressure to cut rates, while U.S. monetary policy discussions are impacted by potential regulatory changes under the Trump administration. Markets remain volatile as geopolitical uncertainties and trade concerns loom large.

(With inputs from agencies.)