By The current situation in the world of trading is one of great uncertainty. Many factors are at play that could potentially impact the stock markets, including Russia’s war on Ukraine, the ongoing trade dispute between the United States and China, Brexit, and geopolitical tensions in the Middle East.
UK traders must stay up-to-date with the latest news and developments in order to make informed choices when trading. This article will delve into the most important things you should know about current news and their impact on financial markets and investor sentiment.
Russia’s war on Ukraine is driving up prices for metals
The current conflict between Russia and Ukraine has been a significant driver of prices for metals such as aluminium and steel. In particular, the price of aluminium has surged in recent months due to fears that sanctions imposed on Russia by the West could disrupt supplies.
There has also been a significant impact on forex trading, particularly those who hold the Russian rouble. The rouble saw a steep decline when the war erupted in late February 2022 when many tried to sell their roubles, and it has not been performing well since. International sanctions and suspensions of global wire transfer in Russia has also caused the currency to continue depreciating.
The current trade war between the US and China is still raging
Despite a partial truce being declared between the United States and China, the trade war continues to escalate. Tit-for-tat tariffs have been imposed by both sides, with no end in sight, and this conflict has had a significant impact on global trade flows. It is also likely to continue in the months ahead.
The trade war has harmed both economies substantially. The US economy has slowed down due to the higher tariffs, while the dispute has also hurt China’s economy as it is a large country that has a lot of manufacturing resources and export hubs.
Brexit, having finalised, has slowed down the UK’s economy
The United Kingdom voted to leave the European Union in June 2016. Immediately, the economic costs of Brexit were 2% of its GDP that year, with British income reduced anywhere between 0.6% and 1.3%. When Brexit was finalised on 1 January 2021, the UK saw difficulty in importing and exporting goods from the EU, significantly slowing down the economy and causing great difficulty as expenses for imported goods increased.
The global economy is trying to recover from the financial ruin caused by the pandemic
The global economy is still attempting to recover from the Covid-19 pandemic that left many unemployed and stunted international business development. As of May 2022, the virus has killed more than 6.2 million people worldwide and over 523 million people have been infected.
While stocks are on the rebound as the world opens up and border control loosens, global economic growth remains slow. Growth in advanced economies are expected to decline 3.8% in 2022 and 2.3% in 2023, while growth is expected to drop 4.6% in emerging and developing economies in 2022 and 4.4% in 2023.
The final word
These are some things you should know about current news in trading. Stay up to date with the latest news and developments in trading to make informed decisions about your investments and use a reputable online broker such as Saxo Bank. For information on options trading and other instruments, you can read more here.
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