Estonia's Chief of Foreign Intelligence Mikk Marran said on Wednesday that Russia is moving a further 10 battle groups towards an area near Ukraine where 100 battle groups have already been deployed. The Foreign Intelligence Chief added that Russia is "likely" to launch a "limited" assault against Ukraine, occupying chunks of territory, with an escalation of fighting in the Eastern breakaway provinces "highly likely". The Intelligence Chief warned that Russian success in Ukraine would encourage it to pressure the Baltic states.  

Market Reaction

With markets primarily focused on the recent Fed minutes release at the moment, the latest negative geopolitical headlines haven't dampened sentiment yet, with the S&P 500 having jumped about 30 points over the last 30 or so minutes to now trade flat again on the day. While it might be risk on right now given the dovish minutes, warnings of continued Russian escalation could soon recapture the focus and weigh on sentiment once more.