Traders will continue to monitor the situation closely. Wars are bad news for financial markets and risk assets. The markets hate uncertainty, so the stabilizing of the situation is bringing some relief. However given that Russia is a major oil & grain supplier and is a key producer of palladium, used in catalytic converters fears of price rises are very real.
Global finance ministers have warned Russia that there will be severe sections should they invade. However, it’s worth keeping in mind that Europe is heavily dependent on Russia for energy supply, so sanctions could be met with Russia restricting energy supply to Europe which could not only slow growth but also send energy prices surging higher.