Ministry matters

Russian Defense Ministry says it will stop military activities around Kyiv and Chernihiv

Russia’s Defense Ministry said on Tuesday it would reduce military activity in Kyiv and Chernihiv to create conditions for dialogue, Reuters reported, correcting an earlier headline where they claimed Russia had said that would ‘stop’ military activity in the region. . The Russian Ministry of Defense called on Ukraine to respect the Geneva Convention relating to prisoners of war.

Market reaction

A recent announcement hinting at a reduction in military activity around the main cities of northern Ukraine, kyiv and Chernihiv, as well as updates hinting at constructive peace talks have triggered an improvement in appetite for the risk. The safe-haven US Dollar is plunging accordingly, with the DXY recently falling below 98.50 and session lows. Other safe havens also took a hit, with spot gold plunging around $10 within minutes to test the $1900 level.

The US 10-year yield also hit new highs above 2.52% as safe-haven US bonds come under selling pressure. Meanwhile, the unwinding of geopolitical risks saw oil prices come under heavy selling pressure, with first-month WTI futures falling sharply from the $107 zone to the lows of $100.