After the invasion of Ukraine, investors’ appetite for risk has returned; the dollar and oil have both pared gains


Within a week of Russia’s incursion of Ukraine and reactions from other regions of the world, institutional investors finally discovered most of their insatiable appetite for riskier investments by 24 March (Thursday Afternoon), with the stock index performing very well and beyond its previous performances.

Treasury rates in the United States have recovered much of their losses after dropping dramatically previously in the day. Russia’s rouble recovered most of its losses even against the American dollar, while the price of gold, which had risen as much as 3.5 percent earlier, has been in the red.

Whereas the S& P 500 progressively recovered lost territory after reaching a session low at the start, there was a marked uptick in appetite for risk after announcing new penalties against Russia by U.S. President Joe Biden. He said that the U.S. is collaborating with oil-producing nations to ensure the world’s energy security.

Although Biden emphasized that U.S. soldiers would not combat in Ukraine, he did say that more soldiers had been sent to Germany. The restrictions mentioned were on Russian banks and information imports, but not petroleum & gas or the SWIFT global financial network.

As per Jack Janasiewicz, chief investment officer at Natixis Investment Managers Solutions, potential investors who are the most worried about the economy in sectors such as electricity were reassured by what the penalties did not contain.

He said that traders were purchasing assets like technology equities, which had been falling in the run-up to the raid. “Probably right today, you’re trading your wins to acquire failures. That is the cycle that we are witnessing, “he said.

MSCI’s global market index (. MIWD00000PUS) fell 0.46 percent after plunging and over 3% towards its poorest possible level until March 2021.

The Dow Jones Industrial Average (.DJI) ended the day up 92.07 points, or 0.28 percent, at 33,223.83, while the S& P 500 (.SPX) rose 63.2 points, or 1.50 percent, to 4,288.7, and the Nasdaq Composite (.IXIC) rose 436.10 points, or 3.34 percent, to 13,473.59.

Brent closed up 2.3 percent at $99.08 a barrel, compared to its session high of $105.79. U.S. crude closed up 0.77 percent at $92.81 per barrel, but well behind its session high of $100.54.

The benchmark index remained up 0.91 percent, while the euro traded at $1.1195, down 1.01 percent. Earlier, the dollar had soared to a two-year high versus a composite of leading currencies, rising as much as 1.62 percent. FRX

After falling to a record low of 89.986 per dollar, the Russian rouble RUB= fell 4.51 percent against the greenback to 84.96 per dollar. 

The price of fundamental 10-year notes jumped 4/32 to yield 1.9651 percent, up from 1.977 percent late Wednesday. Before this, the 30-year bond decreased 5/32 in price, yielding 2.2818 percent, down from 2.275 percent. The yield on the 2-year note increased by 2/32 to 1.5697 percent, up from 1.6 percent.