largest nuclear power station in Ukraine. This has brought a fresh wave of risk-aversion, which is clearly visible from the downtick in the regional indices.
Japan’s Nikkie225 declines 2.3%, China A50 drops almost 1% while Nifty50 looks to open on a weak note at the press time. Earlier, the sentiment in the market turned negative on Thursday after the truce talks 2.0 between the Kremlin and Ukraine ended without a principal outcome. The second round of peace talks between the nations resulted in the continuation of Russia’s invasion of Ukraine. However, the Ukrainian civilians were allowed to move to safe passages. This has paused destruction to human life to some extent but it has not been considered as a step towards a ceasefire.
Apart from that, Federal Reserve Chair Jerome Powell’s testimony on Thursday before the US Congress was loud and clear on a fresh wave in inflation amid the Ukraine crisis. Therefore, a 25 basis point interest rate hike is almost done deal in the Marchmeeting. The Ukraine crisis is set to result in supply chain bottlenecks and rising oil prices, which may keep inflation at peak levels for a while.
As of now, the odds of a quarter of the percent rate hike are more inattention, although the US Nonfarm Payrolls from the Bureau of Labor Statistics are due on Friday, which may further dictate the likely monetary policy action from the