Fall in stocks and rise in gold: Failed Russian uprising generates interest in safe-haven assets.

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Global stock markets experienced a decline while the price of gold increased following a rebellion by Russian mercenaries that challenged the authority of President Vladimir Putin. This situation forced investors to focus on the global macroeconomic context.

The MSCI All-World index recorded a 0.1% decrease, mainly due to declines in Europe, where defense sector stocks weighed on the STOXX 600, which decreased by 0.3%. Gold, often considered a safe-haven asset in times of geopolitical or market turmoil, experienced a 0.6% increase, reaching $1,932 per ounce.

The private militia Wagner eventually withdrew after reaching an agreement guaranteeing their security and the passage of their leader, Evgeniy Prigozhin, to Belarus.

The consequences of the war in Ukraine are still unclear, but the questioning of President Vladimir Putin’s authority is the most violent in decades during his tenure. In the absence of concrete indications for the markets, investors preferred fixed-income securities and other safe-haven assets over stocks, especially after the release of a series of investigations into economic activity last Friday.

“The market is still in a transition phase, but I believe the stress we observed in the stock markets began before the Friday news and before the events of the weekend,”

According to Frederik Ducrozet, economist at Pictet Asset Management,

he also added:

“When in doubt, just follow the trend of the past few days, and it is likely that Europe and central banks will have to face this hawkish trend.”

According to Frederik Ducrozet, economist at Pictet Asset Management,

The price of gold, which reached its lowest level in three months on Friday, increased by 0.2%, reaching $1,925 per ounce.

Brent crude oil futures decreased by 0.3%, reaching $73.69 per barrel after reaching $74.80. Additionally, the ruble reached its lowest level in 15 months in Moscow. Russian mercenaries launched a short-lived rebellion on Saturday, taking control of the city of Rostov in the south of the country and heading towards Moscow to demand the withdrawal of Russian military commanders responsible for the war in Ukraine.

US Treasury bonds remained stable, with yields slightly lower as they decrease when prices rise. Two-year yields declined by 4 basis points to 4.71%, while ten-year yields decreased by 5 basis points to 3.69%.

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