The two big headlines from yesterday:
- Ukraine NATO headline appears to be reversing markets but it's old news
- Putin signs a vague decree on limiting Russia exports
I don't think it needs saying that jitters are remaining as the Russia-Ukraine war continues to play out. But at this stage, headline risks can be two-sided and yesterday is but evidence of that. Sure, the headline on Ukraine not insisting to join NATO is old news but the wider airing managed to get broader markets a bit jumpy - even if for a brief moment.
That continues to suggest that volatility remains high and markets are still sensitive to headline risks.
I don't expect that to change any time soon even with the focus on key central bank meetings coming up. At this stage, there's only two possible real key developments that markets really care about. The first being that Russia steps up its aggression and takes over Kyiv. The second being that peace is brokered between the two sides.
The trade then will be to ride with the headlines but until we get there, it's going to be tough to manage positions in markets that are reacting on emotion more than anything else.
