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Market Replace – February 24 – Shares plummet, oil up as Russia assaults Ukraine

Danger aversion has hit markets arduous amid reviews of a full blown assault from Russia on Ukraine, which has additionally lifted Brent clearly above the $100 per barrel mark. Ukraine declared a 30-day state of emergency, known as up reservists and urged its residents to depart Russia. Extra cyber assaults on authorities web sites and banks and disinformation campaigns have been seen as a prelude to battle. Additionally, US officers mentioned diplomacy with Russia was lifeless for now. That added to the gloom. Russia suspended motion of economic vessels in Azov Sea. Von Der Leyen – EU Planning `Huge Sanctions’ on Russia. 

Treasuries rallied and inventory markets throughout Asia bought off because the world watches Ukraine. The US Treasury fee is down -12.3 bp at 1.868%, whereas the Nikkei has misplaced -1.8%, the ASX practically 3% and Dangle Seng and CSI 300 -3.1% and -2.3% respectively. Brent is buying and selling at $102.19, the entrance finish WTI future at $97.07 per barrel. Gold beneath $1949. USDRUB at 80.99.

  • USD spikes (USDIndex 96.75)
  • US Yields 10-year yield all the way down to 1.868%.
  • EquitiesGER30 and UK100 futures are down greater than 3.5% and a couple of% respectively, whereas USA500 was down 2.3% and USA100 fell 2.8%, placing the USDIndex on observe towards confirming it’s in a bear market.
  • Reuters: “Closing down a minimum of 20% from its Nov. 19 report excessive shut of 16,057.437 factors would affirm the Nasdaq has been in a bear market, based on a broadly used definition. That might mark its first bear market since 2020, when the coronavirus outbreak crushed world monetary markets.”
  • USOil – spiked to $96.46, & UKOIL handed $100 a barrel for the primary time since 2014, including to inflation worries.
  • Gold – rallied over 2% as haven demand ebbed – beneath $1900.   
  • Bitcoin beneath $35,000 as, sell-off unfold to cryptocurrency markets as properly.
  • FX markets Yen benefited, whereas the Euro and to a lesser extent Sterling struggled. EURUSD at 1.1245, USDJPY drifted to 114.39, Cable breached 1.3485.

European Open – The March 10-year Bund future has gained 182 ticks, outperforming versus US futures, that are up 119 ticks, whereas in money markets the US Treasury yield has lifted off in a single day lows, however continues to be down -10.9 bp on the day at 1.882%. Europe particularly is seen as susceptible to the escalation of the state of affairs as a result of it may additionally doubtlessly have an effect on vitality provides, though a German financial institute yesterday urged Germany may get by way of the winter even when Russia completely cuts off gasoline provides. In the meantime extra sanctions on Russia’s financial system are underway and for now the state of affairs stays fluid, which is able to maintain markets in defensive mode and heading for security.

At this time – At this time’s knowledge calendar contains US GDP, Jobless claims, PCE and speeches from ECB members and Fed Members.

Greatest FX Mover @ (07:30 GMT) USDRUB (+6.42%) Spiked to 80.99 excessive.  MAs now aligned increased, MACD sign line & histogram considerably above 0 line, RSI 72.88 & rising. H1 ATR 0.54430, Every day ATR 1.32211.

Click on right here to entry our Financial Calendar

Andria Pichidi

Market Analyst

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