February 2022 will be remembered for the Russian invasion of Ukraine. This crisis has brought stress marks on the face of world leaders, but investors are closely watching the conflict and then weighing its economic implications. Astute traders and investors know that geopolitical factors have long-lasting effects. There was a very minor fluctuation in the share market. After the conflict in Ukraine began to unfold, the markets paused for breath. The Asian shares started to edge up, and the investors also started taking a note of energy prices. The Western nations are encircling Russia through a wall of sanctions. All these attempts are likely to have some major and minor effects in world politics.
Despite the continuation of the conflict, Asian markets are showing signs of stability. The escalation of sanctions on Russia did not have any major impact. The MSCI's broadest index of Asia-Pacific shares outside Japan made a gain of 0.5%. Similarly, in early trading, Japan's Nikkei jumped 1.5%. After receiving a boost from tech and financial stock, Australia's S&P/ASX 200 index made a gain of 1.38%. The Chinese blue chips made a gain of 0.5%. Important news in the world market is being eclipsed by the Russia-Ukraine conflict. The market strategists are closely observing the steps of the government and central banks. The spot gold was at $1,902 an ounce.
The investors and traders also take into account the broader implications. Energy prices and the status of inflation are also taken into account. The Brent crude futures rose by 0.63%, and it was touching $98.59 per barrel. It is interesting to note that the benchmark was touching its seven-year high figure of $105.79. The market is calm because the Western countries are discussing the coordinated release of crude stocks. This step will enable them to mitigate the disruption of gas and oil suppliers from Russia
The oil market is likely to see a sharp rise
Goldman Sachs analysts are closely watching the conflict. The Western countries are slapping Russia with a wave of sanctions. Many investors are eagerly waiting to watch the response of the Organization of Petroleum Exporting Countries (OPEC). The oil prices are rallying and the Brent crude rose by 4.9% and touched the $4.82. It was touching the figure of $102.75 per barrel. The US West Texas Intermediate (WTI) crude also managed to hit $99.10 in early trade. It made a gain of 5% or $4.62. The concern that Russian energy suppliers are likely to get disrupted is also affecting oil and gas prices.