Russia's recent mega combat exercise showcased its nuclear capabilities, coinciding with President Putin's efforts to strengthen ties with China. This display may influence geopolitical risk appetite, particularly in the energy sector, as heightened tensions could lead to supply disruptions or shifts in energy policy. Markets most exposed include Russian equities and energy stocks, which could face volatility due to investor concerns over international sanctions and military escalation. Traders will be particularly attentive to upcoming diplomatic engagements between Russia and China, as any agreements could further impact global energy dynamics and investor sentiment.
Russia Showcases Nuclear Might in Major Drill Amid Xi Visit
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