Flash: Risk aversion deepening - WIB

FXStreet (Guatemala) - Sean Callow, analyst at Westpac Banking Corporation ABN noted that risk aversion deepened over the course of the NY session.

Key Quotes:

“The S&P 500 turning early gains into a -1.2% close, accompanied by sharp gains in safe haven treasuries and JPY”.

“China’s soft data late Thursday had cooled market sentiment but the main focus was Ukraine, with the Russian military announcing new exercises on the Ukraine border and Germany strengthening its warnings to Russia ahead of Sunday’s referendum in Crimea”.

“Voting in the Crimea referendum to secede from Ukraine will close at 7am Monday Sydney time, though the focus seems likely to be less on the outcome than the reaction in Moscow and the West. Market-negative possibilities include the West imposing tougher economic sanctions on Russia which could respond by disrupting natural gas supply to most of the Ukraine and in turn to parts of the EU”.

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