Inceptial Offers Trading Opportunity in Singapore Amid Market Uncertainty

The crisis in Ukraine has dominated global headlines all week. Following the escalation of conflicts at the Russia-Ukraine border, Russian forces have continued their attacks on their neighbours on what seems like a full-scale invasion.

As a result of Russia’s actions, the country has been slammed with multiple sanctions from the international community.

Led by the United States, these sanctions have been crippling – Russian banks have been cut from the SWIFT banking network, oligarchs with ties to Russian President Vladimir Putin have been targeted, and much more.

The Spillover Effect

The conflict has also affected both economies.

The Ukrainian hryvnia has fallen by 6% against the dollar since the conflicts escalated, and the Russian Ruble hit a new low and is down by 25% against the greenback in the same period.

However, as it’s common with most international conflicts, this crisis has spilt over. To kick off March, Gan Kim Yong, Singapore’s trade and industry minister, shared a bleak outlook for the island nation’s economy as it hopes to stabilize amid all of the conflicts.

Concerns Over Rising Energy Costs

Speaking during a budget debate at Parliament, Gan explained that the Ukraine conflict has increased downward pressure on Singapore’s economy.

The Singaporean government had earlier projected GDP growth between 3% and 5% for this year, with core inflation to stay below the 3% margin. However, in his speech, Kim noted that the initial assessment might no longer hold.

As Gan explained, Singapore’s economy has so far managed to weather the storm – primarily because Singapore’s firms have a very limited presence in eastern Europe.

The country also doesn’t import any essential supplies from the conflict-laden region. Still, things could change and become dire on a dime with the conflict evolving.

Make no mistake, that while Ukraine may seem far away from Singapore, the conflict there will have real and significant impact on all of us, Gan said.

He added that the sanctions being imposed on Russia could threaten global energy supplies and cause prices to skyrocket.

If that happens, Singapore risks facing a significant hike in oil imports.

The country imports most of its energy needs, and the recent jumps in the prices of Brent crude oil and liquefied natural gas could be cause for concern.

Opportunities in the Crisis

Of course, the jump in the prices of these assets also presents an opportunity for retail investors who want to play in the market. Investors who want to bet on oil can do so using oil futures, options to exchange-traded derivatives. Popular retail trading platform Incepital offers access to over 160 tradable assets, including oil.

With up to 1:500 leverage, the online broker provides an interesting opportunity for investors who would like to make money.

Currently, the hope for everyone is that the Ukraine conflict ends as quickly and amicably as possible – even though the prospect of that happening looks bleaker by the day. However, economies will want to brace themselves for a possible escalation.