Amid a weekend of increased tensions between Russia and Ukraine, global markets have reacted dramatically with Spreadex calling the FTSE 100 down around down around 76 points. With the Ukraine geopolitical situation continuing to get worse, investors have sought a safe haven in precious metal Gold. The yellow metal has seen a $20 spike increase alongside Brent Crude which has surged to around $110.80 a barrel for settlement in April, up nearly two dollars.
FX pairs have tumbled due to disappointing data in Asia and the Ukraine situation with AUD/USD dropping to around 0.89 soon after the open; however investors seem to have bought into the dip bringing the pair slightly back in line. HSBC Final Manufacturing PMI came in at 48.5 overnight which shows output and new orders have fallen in China.
Looking towards the day ahead, GBP Manufacturing PMI is set to be released this morning, ECB President Draghi is to speak and USD ISM Manufacturing will be released in the afternoon. With a week of high importance economic data and the geopolitical situation in Ukraine showing no signs of rest, we look set for a very volatile week of trading.