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NATO is once again at the centre of global affairs following Russia’s “full force invasion” of Ukraine. Russia had requested assurances that Ukraine would not join the group’s defence alliance and that it will not venture further east.
On the other hand, the West opposed Russia’s demands, claiming that any sovereign country can join the defence alliance. Western officials, notably President Joe Biden, have offered to negotiate NATO’s position in Europe. But what precisely is NATO’s goal, and which nations are current members/representatives?
NATO is short for the North Atlantic Treaty Organization, which was formed in the aftermath of World War II to provide a collective defence to its member countries. This implies that if a member country is endangered by an external government, it will respond with mutual defence. NATO now has 30 member nations, with three aspirant states. The 12 founding states that signed the first 1949 pact are the United States, the United Kingdom, Belgium, Canada, Denmark, France, Iceland, Italy, Luxembourg, the Netherlands, Norway, and Portugal. In April 2022, Finland and Sweden highlighted their clear intent to join the defence alliance.
So how does this impact the market and when should traders care?
Geopolitical uncertainties tend to trigger sharp market volatility in stocks, oil, metals, currencies and commodities. Oil jumped 5% on April 12, on possible sanctions on Russian oil. The US dollar hit a 20-year high on May 5, with rising demand for safe-havens.
While war prospects may lend upside to defence stocks, supply concerns may send oil and commodities higher, and the US dollar and gold may be supported by investors adding safe-haven options to their portfolios. Whatever the direction, volatility does offer far more attractive trading opportunities than flat markets. But it’s important to know how to read the markets. Follow our analysis for daily updates on the markets and discover trending stocks and commodities at Vantage Markets .
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Vantage is a global, multi-asset broker offering clients access to a nimble and powerful service for trading CFDs on Forex, Commodities, Indices, Shares.
With more than 10 years of market experience and headquartered in Sydney, Vantage now has over 1,000 staff across more than 30 global offices.
Vantage is more than a broker. It provides a trusted trading ecosystem that enables clients to achieve their own success, in a faster and simpler manner.
Empowering you to better trade on the right market opportunities. trade smarter @vantage.
