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Global markets continue to follow mixed course

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NEW YORK, NY - FEBRUARY 27: Hundreds of anti-war protesters are gathered at the Washington Square Park in New York City, United States on February 27, 2022 to protest Russian attacks on Ukraine. ( Tayfun Coşkun - Anadolu Agency )
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Mar 01, 2022 - 10:00 AM

ISTANBUL (AA) – Global markets followed a mixed course on Tuesday with uncertainties stemming from the Russia-Ukraine war and low risk appetite.

The war between Russia and Ukraine continues to be decisive on asset prices.

On Monday, the officials of the two countries met at Ukraine’s Belarusian border, but there has been no positive outcome so far.

Australia decided to send military aid to Ukraine, as many companies decided to withdraw their investments in Russia.

Analysts noted that the possible removal of Russia from the MSCI developing countries index is also an important development.

Russia’s central bank raised the policy rate from 9.5% to 20% on Monday, as it announced that the Moscow Exchange will remain closed throughout the week.

The dollar/ruble parity saw its highest level of all time with 114 and closed the day at 107.8, increasing by 29% compared to the previous close. On Tuesday, the exchange rate opened at 105.

In the wake of the war with Ukraine and subsequent sanctions, Russian citizens are prohibited from taking foreign loans in foreign currency and depositing foreign currency in bank accounts abroad.

White House Spokesperson Jen Psaki said that the US does not plan to announce a “no-fly zone” in Ukraine because it would mean entering into direct conflict with Russia.

Analysts noted that the uncertainty in global markets continues to affect asset prices, adding that the demand for safe-haven assets is still high.

With these developments, the ounce price of gold, which rose by 1.15% on Monday, is at $1,907 with a flat course in Asian markets on Tuesday, while the price of Brent oil per barrel is trading at $98.5, 0.8% percent above the previous closing.

The US 10-year bond yield was stabilized at 1.86% after falling 13 basis points to 1.83% on Monday.

On Monday’s close, S&P 500 and Dow Jones indices dropped by 0.49% and 0.24%, while Nasdaq finished the day at 13,751, up 0.41%.

Due to the war between Russia and Ukraine, sales-oriented trend continues in the European stock markets.

Shell joined a list of European companies to exit all its Russian operations, including a major liquefied natural gas plant.

The European Central Bank (ECB) announced that some European subsidiaries of Russia’s largest bank Sberbank are considered to be at the verge of declaring bankruptcy.

The euro/dollar parity is at 1.12, 0.1% below the previous close.

All major European indices closed Monday in red.

On the Asian side on Tuesday, the purchasing managers index (PMI) for the manufacturing industry in Japan fell to 52.7, while it increased in China.

In Asia, while the number of COVD-19 cases differ regionally, Japan has started to gradually ease the border measures.

China’s liquidity injections and steps to support the economy continue to support the stock markets.

While the Nikkei 225 index in Japan increased by 1.2% and the Shanghai composite index in China increased by 0.3%, the Hang Seng index in Hong Kong decreased by 0.49%.

In Turkiye, the BIST 100 index fell 0.32% to 1,946.19 points on Monday’s close.

The dollar/Turkish lira, which completed the day at 13.84 with an increase of 0.33% on Monday, traded at 13.82 at the opening of the interbank market on Tuesday.

* Writing by Gokhan Ergocun

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