Breaking: Russian President Putin to recognise Donetsk and Luhansk in Ukraine's East as independent states
|Russian President Vladimir Putin is to sign a decree recognise the breakaway regions of Eastern Ukraine, Donetsk and Luhansk, as independent nations, the Kremlin announced on Monday. Putin had informed the President of France and Chancellor of Germany of his decision shortly before the Kremlin made it official and they were reportedly "dismayed". France has subsequently called for a UN security council meeting on the Ukraine crisis, reported French press.
Market Reaction
Markets saw a risk-off reaction to confirmation that Russia will recognise the breakaway regions of Ukraine as independent as this is deemed as a big escalation that makes a military confrontation between Ukraine and Russia (i.e. a Russian invasion) significantly more likely. In FX markets, safe-haven currencies including USD and others have been gaining in recent trade while risk-sensitive currencies have been taking a hit. US equity futures continue to press to fresh lows of the day, with S&P 500 futures now down about 1.3% and underneath the 4300 level. Oil prices have been on the front foot with WTI rallying into the mid-$93.00s from as low as the mid-$92.00s just a few minutes ago.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.