Precious metals traded downward for a majority of the day thanks to a much calmer and at-ease marketplace. The reason behind this more subdued investing atmosphere was the Russia-Ukraine peace talks held over the weekend. Other than that, there really wasn’t very much going on by the time markets opened today. There is a big central bank meeting being held in Wyoming later this week, but apart from that investors haven’t too much to look forward to this week from an economic data standpoint.
Talks of a Ceasefire Make Rounds…For Now
When last week was beginning to wrap up, news began circulating with regard to Ukrainian military forces engaging and destroying a large portion of a Russian armed military convoy. Though these reports were not initially confirmed by Russian media or any other party, it was enough to send a shock wave of concern across the global marketplace. Everyone’s fear throughout this whole situation was that Russia and Ukraine were destined to face off in combat, but up until last week that had not officially taken place. For this reason, most investors entered the weekend very unsure of what direction this situation was headed.
Fortunately for everyone, German, French, Russian, and Ukrainian officials met over the weekend to discuss a potential ceasefire agreement between pro-Russian separatists and Ukrainian military forces. Though no agreement was reached, the fact that Ukraine and Russia are willing to sit down and discuss matters is a step in the right direction. Though the fighting still rages in Eastern Ukraine, the market is much more content with the direction the situation is heading in, at least for now.
In other news, this quiet week will be capped off with the Kansas City Federal Reserve meeting, being held in Jackson Hole, Wyoming. This meeting of some of the world’s biggest and most important central bank leaders has, in the past, played host to many important speeches with regard to the future direction of worldwide monetary policies. This time around, because Janet Yellen and ECB president Mario Draghi are expected to speak, investors will be paying incredibly close attention. From Draghi, it will be interesting to see what he has to say about recently dismal EU economic data. From Yellen, investors are hoping to hear some sort of updated news with regard to if and when the Fed plans on raising interest rates in the United States. Though it is very likely that little to no new information will be found out, investors from around the world will be paying attention nonetheless.
Seeing as we are smack dab in the middle of August, the quiet and subdued marketplace we are currently witnessing is not at all unusual. By the time September rolls around, it is likely that the global marketplace will be abuzz with a good bit more activity and talking points.