Stocks fell, oil and gold went up. Such were the immediate reactions of the markets to Russian President Vladimir Putin’s speech in which, among other things, he announced a partial mobilisation due to the war in Ukraine.
European stocks in the red
Putin’s announcement of partial mobilisation initially sent European stocks into the red. Later in the day, however, the main European stock indices erased their losses. The pan-European Stoxx 600 index surpassed Tuesday’s closing level shortly after midday on Wednesday, when it was almost half a percent stronger. Other European bourses performed similarly.
Oil also reacted to Putin’s speech, with its price first rising, only to fall again later in Wednesday’s trading. Nevertheless, its price was above Tuesday’s closing level for the rest of the day, i.e. above $91 per barrel in the case of Brent crude.
Gold price goes up
Gold, which investors traditionally bet on in times of uncertainty, also headed higher. Its price increased by 0.57 percent. According to analysts, it is possible that the troy ounce will even trade at $1,800 this year, where gold was last at the end of July this year. It will also depend on the US central bank.
