Ukrain's President Zelenskyy: Talks about Ukraine without Ukraine will not bring about results
Ukrainian President Volodymyr Zelensky said late Tuesday that he would support a proposal to stop strikes on energy infrastructure. However, talks about Ukraine without Ukraine will not bring about results.
US President Donald Trump and Russian President Vladimir Putin on Tuesday agreed to a partial ceasefire on strikes against energy and infrastructure in their marathon call.
Key quotes
Zelensky hopes to speak to Trump to receive more details of Putin's call.
Ukraine would support a proposal to stop strikes on energy infrastructure.
Kyiv's partners would not agree to stop military aid, hope it will continue.
Talks about Ukraine without Ukraine will not bring about results.
Says he spoke with Scholz and Macron after the Trump-Putin call.
Russia is preparing new offensives in the coming months.
The unconditional or partially unconditional ceasefire would be a positive result, there are steps towards peace.
Market reaction
At the time of writing, the Gold price (XAU/USD) is trading 0.04% lower on the day to trade at $3,033.
Risk sentiment FAQs
In the world of financial jargon the two widely used terms “risk-on” and “risk off'' refer to the level of risk that investors are willing to stomach during the period referenced. In a “risk-on” market, investors are optimistic about the future and more willing to buy risky assets. In a “risk-off” market investors start to ‘play it safe’ because they are worried about the future, and therefore buy less risky assets that are more certain of bringing a return, even if it is relatively modest.
Typically, during periods of “risk-on”, stock markets will rise, most commodities – except Gold – will also gain in value, since they benefit from a positive growth outlook. The currencies of nations that are heavy commodity exporters strengthen because of increased demand, and Cryptocurrencies rise. In a “risk-off” market, Bonds go up – especially major government Bonds – Gold shines, and safe-haven currencies such as the Japanese Yen, Swiss Franc and US Dollar all benefit.
The Australian Dollar (AUD), the Canadian Dollar (CAD), the New Zealand Dollar (NZD) and minor FX like the Ruble (RUB) and the South African Rand (ZAR), all tend to rise in markets that are “risk-on”. This is because the economies of these currencies are heavily reliant on commodity exports for growth, and commodities tend to rise in price during risk-on periods. This is because investors foresee greater demand for raw materials in the future due to heightened economic activity.
The major currencies that tend to rise during periods of “risk-off” are the US Dollar (USD), the Japanese Yen (JPY) and the Swiss Franc (CHF). The US Dollar, because it is the world’s reserve currency, and because in times of crisis investors buy US government debt, which is seen as safe because the largest economy in the world is unlikely to default. The Yen, from increased demand for Japanese government bonds, because a high proportion are held by domestic investors who are unlikely to dump them – even in a crisis. The Swiss Franc, because strict Swiss banking laws offer investors enhanced capital protection.