Ukrainian and US officials held talks in Riyadh on Sunday and resumed the efforts to end three years of war as President Donald Trump presses for a ceasefire per year. Bloomberg.
Ukrainian Defense Minister Rustem Umerov said the negotiations on Sunday in Saudi -Arabia were “productive and focused.” Umerov addressed key points, including suggestions for protection of energy facilities and critical infrastructure. The US and Russian delegates are expected to give separate lectures on Monday.
Market reaction
At the time of writing, the Gold Price (XAU/USD) is 0.02% higher on the day to shop for $ 3,024.
Risk mood often asked questions
In the World of Financial Jargon The Two WideLY USED TERMS “RISK-ON” AND “RISK OFF ” REFER TO THE LEVEL OF RISK THAT INVESTORS ARE WILLING TO STOMACH DURING THE PERIOD REFERENCE DEGINE Start to ‘Play It Safe’ because they are worried about the future, and therefore buy less risky assets that are more certain certain of bringing a return, even if it is relatively modest.
During periods of “risk-on”, stock markets will typically increase, most raw materials-except gold-will also win in value as they benefit from a positive growth prospect. The currencies for nations that are heavy commodity exporters are strengthening due to increased demand and cryptocurrencies are rising. In a “risk-off” market, bond-Issky large government bonds are rising, and secure port currencies such as the Japanese Yen, Swiss Franc and US Dollar benefit.
The Australian Dollar (AUD), the Canadian Dollar (CAD), the New Zealand dollar (NZD) and less, for example, as the rubles (rubbing) and the South African rand (ZAR), all tend to rise in markets that are “risk-on”. This is because the economies of these currencies are highly dependent on raw material exports for growth, and raw materials tend to increase in price in risk. This is because investors foresee greater demand for raw materials in the future due to increased economic activity.
The largest currencies that tend to rise during periods of “risk-off” are the US dollar (USD), the Japanese Yen (JPY) and the Swiss Franc (CHF). The US dollar because it is the world’s reserve currency and because in times of crisis, investors buy US government debt, which is seen as secure because the largest economy in the world is probably not defaulted. Yen from increased demand for Japanese government bonds because a high proportion is held by domestic investors who are likely to not dump them – even in a crisis. Swiss franc because strict Swiss bank cloves offer investors improved capital protection.