Logo of Phnom Penh Post newspaper Phnom Penh Post - Stock indexes wobble amid Russia-Ukraine conflict

Stock indexes wobble amid Russia-Ukraine conflict

Content image - Phnom Penh Post
Analysis by Golden FX Link Capital business manager Long Samnang.

Stock indexes wobble amid Russia-Ukraine conflict

Global stock indexes – including the Nasdaq 100 – are facing the heat as tensions continue to grip eastern Europe since war broke out between Russia and Ukraine on February 24, and recent peace talks having been unsuccessful.

Ukrainian President Volodymyr Zelensky on Monday made a formal request for his besieged nation to join the EU immediately under what he described as a “new special procedure”.

Russia’s banking system is in crisis, especially with the weakening of its national currency, with the rouble dropping nearly 30 per cent against the US dollar this week.

This pressured Russia’s central bank to immediately raise interest rates to 20 per cent.

These are some of the repercussions from the economic sanctions after some Russia banks were banned from the SWIFT international payment system.

Although geopolitical issues have sent stock markets wobbling, American investor Warren Buffett last week warned against a rush to hold gold or cryptocurrencies during the outbreak of war.

The Chicago Board Options Exchange’s Volatility Index – VIX – which is based on the S&P 500 index options, is a popular measure of the stock market’s expectations of volatility.

Also known as the “fear index”, VIX is being traded between 28 and 34 points, indicating that the market is trading in an uncertain environment.

The ongoing Russian military assault on Ukraine will weigh heavily on some US tech companies’ stock prices such as Facebook, Google, Amazon, Microsoft and Tesla.

Investors should therefore sell the Nasdaq 100 stock index in the range of 14,600 to 17,500 by setting a take-profit function at 13,770 and stop-loss at 15,000.

Content image - Phnom Penh Post

MOST VIEWED

  • Angkor lifetime pass, special Siem Reap travel offers planned

    The Ministry of Tourism plans to introduce a convenient, single lifetime pass for foreign travellers to visit Angkor Archaeological Park and potentially other areas. The move is designed to stimulate tourism to the culturally rich province of Siem Reap as the start of the “Visit

  • Bosba: The first Khmer woman composer from UK’s Cambridge

    Bosba Panh is just 25 years old, but she’s already accomplished some impressive milestones for herself and the Kingdom. On July 24, she graduated with a Master’s degree from the University of Cambridge as the first Khmer woman composer and Khmer music graduate ever at

  • ‘Golden’ Angkor Wat likely due to natural phenomenon: ANA

    Pictures and video clips of the Angkor Wat temple, its spires seemingly coated in gold, have been shared tens of thousands of times on social media, prompting a sense of wonder among those who have seen them. Hong Sam Ath, who took the pictures and

  • Pailin longan winery tries to break through to the big time

    Longan aren’t quite as glamorous as some fruits. They don’t have the star-power of mangos or generate the excitement of a pricey seasonal niche fruit like the pungent durian. Unlike bananas or oranges, which are known and loved everywhere, longan remains a decidedly

  • Debt restructuring over, time to tackle rising NPL ratio

    The Cambodian banking system has just completed a 26-month debt restructuring exercise where scores of loan accounts were revised, classified and provisioned as the rate of non-performing loans inched up, sparking a slight credit risk unease Implemented in April 2020, the Covid-19 debt restructuring measures came

  • Koh Slaket studio resort brings culture with style

    Davitra (Cambodia) Co Ltd’s multi-million-dollar 13ha Koh Slaket studio-cum-resort just east of the capital was inaugurated in the first phase on August 6, providing national and international tourists with a new travel option and job opportunities for locals. The man-made cultural and scenic lakefront getaway