Markets keep the calm for now as we enter new territory in the Russia-Ukraine conflict | investingLive
In case you missed it, there was a new development overnight in the ongoing conflict between Russia and Ukraine. Russian drones were said to have crossed Ukraine’s border, enough to prompt a response from Poland for the first time since the conflict began in 2022.
Poland called the incursion as “an unprecedented violation of Polish airspace by drone-type objects”. Adding that those objects “repeatedly violated” Polish airspace and that “weapons have been used, and operations are underway to locate the downed objects”.
Again, this is not the first time that Russian drones have flown way far west of Ukraine but there has been an increase in the frequency of such a situation. Polish fighter jets have been called upon a couple of times already as of late to stand guard as drones were moving very close to the border.
However, this is the first time ever that a NATO country is getting involved and has directly engaged against Russian assets since the whole Russia-Ukraine conflict began in 2022.
So far, Polish armed forces are highlighting three regions (marked below) as being the most vulnerable if the situation escalates further.
As we look to European trading, markets are not reacting all too much just yet. Equity futures are still sitting higher while the FX market is looking rather sanguine and tentative, with traders perhaps focusing more on US data this week.
But as geopolitical tensions gets added into the mix, gold will be able to keep finding reasons to stay more bid after a run to fresh record highs earlier this week. The precious metal is up another 0.5% today to $3,643 currently, though coming after some profit-taking in trading yesterday.