We could not find any results for:
Make sure your spelling is correct or try broadening your search.

Trending Now


It looks like you aren't logged in.
Click the button below to log in and view your recent history.

Registration Strip Icon for discussion Register to chat with like-minded investors on our interactive forums.

Geopolitics Puts Pressure On Markets

Share On Facebook
share on Linkedin

It was a busy week for the markets, especially in terms of geopolitics.


First, Vladimir Putin announced the suspension of Russia’s participation in the New START nuclear arms reduction treaty with the United States, while threatening to resume nuclear tests if the United States does so first.

Second, the president of the world’s leading economy, Joe Biden, promised that Washington and its allies will continue to support Kyiv and assured that Russia will never defeat Ukraine. At the same time, he anticipated new sanctions against the aggressor.

On the monetary policy side, as anticipated, the minutes of the February 1st Fed meeting confirmed the regulator’s hawkish stance: the fight against inflation is not over, and rates will rise further. How much further – will depend on the state of the economy and the labor market.

St. Louis Fed President James Bullard, for example, advocated raising rates to a range of 5.25%-5.5%. According to him, the Fed needs to get inflation back under control this year. Otherwise, the situation of the 1970s, when interest rates had to be raised again and again, could be repeated.

No wonder, nervousness has returned to the debt market. Over the last month, the 10-year US government bond yield has risen by more than 12% and is now approaching 4%. Going forward, this could trigger a correction in equities and subprime bonds.

This is because rising Treasury yields reduce the attractiveness of alternative assets and rising corporate bond yields indicate higher borrowing costs for companies. The initiative to increase the US stock buyback tax from 1% to 4% could add fuel to the fire, as it could result in a reallocation of profits from buybacks to dividends.


CLICK HERE TO REGISTER FOR FREE ON ADVFN, the world's leading stocks and shares information website, provides the private investor with all the latest high-tech trading tools and includes live price data streaming, stock quotes and the option to access 'Level 2' data on all of the world's key exchanges (LSE, NYSE, NASDAQ, Euronext etc).

This area of the site is for independent financial commentary. These blogs are provided by independent authors via a common carrier platform and do not represent the opinions of ADVFN Plc. ADVFN Plc does not monitor, approve, endorse or exert editorial control over these articles and does not therefore accept responsibility for or make any warranties in connection with or recommend that you or any third party rely on such information. The information available at is for your general information and use and is not intended to address your particular requirements. In particular, the information does not constitute any form of advice or recommendation by ADVFN.COM and is not intended to be relied upon by users in making (or refraining from making) any investment decisions. Authors may or may not have positions in stocks that they are discussing but it should be considered very likely that their opinions are aligned with their trading and that they hold positions in companies, forex, commodities and other instruments they discuss.

Leave A Reply

Do you want to write for our Newspaper? Get in touch:

By accessing the services available at ADVFN you are agreeing to be bound by ADVFN's Terms & Conditions

Support: 1-888-992-3836 |