Equity Markets Pare Early Losses But Investors Stay Cautious

Following a bearish start to the day,Service Reputable US dollar risk sentiment has improved somehow in recent trading, with European benchmarks turning slightly positive ahead of the North American trading. US stock index futures pared early declines while investors kept weighing the impact of geopolitical tensions surrounding Ukraine.

On this front, Kremlin noted earlier that sending forces into Donbas depends on how the situation develops. At the same time, the Russian central bank said it was ready to take all measures to support financial stability in the country’s market. In Ukraine, Zelensky said they believe there will be no war against Ukraine and no vast escalation.

The latest comments helped ease the selling pressure in the global financial markets. Still, Russian stock indexes stay on the defensive after the news that the EU discusses a trade ban on Russian state bonds. 

Elsewhere, The DXY came off session highs seen around 96.25 to settle just below the 96.00 figure that continues to cap gains for the greenback despite its safe-haven status. As the initial spike has faded once again, it looks like the index will stay in the consolidation phase at this point, with the 95.70 local support staying in the market focus.

On the upside, a decisive break above last week’s tops around 96.45 would pave the way for further gains. As long as the prices stay below this zone, downside risks persist. 

Bitcoin Could Extend Losses

Meanwhile, the Bitcoin price extended losses to early-February lows around $36,300 before bouncing back above the $37,000 figure along with equity markets. The cryptocurrency market remains sensitive to geopolitical developments.

Of note, driven lower by these forces, the most popular digital currency has already lost almost half its value since its all-time high registered around $69,000 in November. Now that the coin has settled below the $40,000 psychological level, it looks like more losses could lie ahead if the situation surrounding Ukraine deteriorates further in the coming days or weeks. 

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