World Markets

World Markets

25 February 2022

World Market – Headlines

  • Dollar jumps to near two-year high as Russia invades Ukraine
  • Asian Stocks Up, but Impact of Russian Invasion of Ukraine Continues
  • Oil tops $105/bbl after Russia attacks Ukraine
  • Treasury yields slide as Russia invades Ukraine

World MarketsCurrency

 

The U.S. dollar jumped to its highest level in nearly two years and the Russian rouble  plunged to a record low on Thursday after Russia launched an invasion of Ukraine, as investors fled risk assets and moved toward safe-haven assets.

The dollar index rose 0.869% and was on pace for its biggest daily percentage gain since March 2020, when U.S, markets were in the throes of the first wave of the COVID-19 pandemic. The greenback reached a high of 97.740 against a basket of major currencies, its highest since June 30, 2020.

Against other safe havens, the dollar rose 0.77% against the Swiss franc while the Japanese yen weakened 0.54% versus the greenback at 115.61 per dollar.The euro was down 0.95% to $1.1202 while Sterling was last trading at $1.3393, down 1.10% on the day.

Equity

Asia Pacific stocks were up on Friday morning, while U.S. equity futures wavered. However, investors continue to calculate the economic and monetary-policy impact of Thursday’s Russian invasion of Ukraine and the Western sanctions on Russia that followed.

Japan’s Nikkei 225 climbed 1.56%. South Korea’s KOSPI rose 1.04% and in Australia, the ASX 200 was up 0.38%. Hong Kong’s Hang Seng Index was up 0.35%.China’s Shanghai Composite rose 1.28% and the Shenzhen Component rose 1.18%.

U.S. shares fell after Thursday’s volatile session that saw the S&P 500 gain 1.5% and the Nasdaq 100 briefly fall into a bear market before climbing 3.4%. U.S. Treasuries were mixed, with the benchmark 10-year yield moving upward. In Asia Pacific, bonds in Australia and New Zealand fell.

Oil

Oil prices jumped on Thursday, with Brent rising above $105 a barrel for the first time since 2014 before easing, after Russia’s attack on Ukraine exacerbated concerns about disruptions to global energy supply.

Global benchmark Brent crude rose $2.24, or 2.3%, to settle at $99.08 a barrel, after touching a high of $105.79.

U.S. West Texas Intermediate (WTI) crude rose 71 cents, or 0.8%, to settle at $92.81 a barrel, after earlier rising to $100.54.

Yields

Investors piled into U.S. government debt on Thursday, pushing Treasury yields sharply lower after Russia invaded Ukraine, but early declines later narrowed as investors assessed the assault’s impact on the economy and capital markets.

The yield on 10-year Treasury notes fell 1 basis points to 1.967%. Earlier U.S. benchmark slid to 1.846%, on track for its biggest daily drop since late November

Economic Events

Economic Calendar
Friday, Feb 25, 2022
TimeCountryEventForecastPrevious
12:30EURGerman GDP (QoQ) (Q4)-0.70%1.70%
16:45EURECB President Lagarde Speaks
19:00USDCore Durable Goods Orders (MoM) (Jan)0.40%0.60%
20:30USDPending Home Sales (MoM) (Jan)1.00%-3.80%
21:30USDFed Monetary Policy Report

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Disclaimer : All information in this report is collected from various sites on internet. Although we have taken all precautions for correct representation of data however we do not take any responsibility for any errors and omissions. The technical analysis and views expressed  is authors own views. We are not responsible for any losses on account of following the same.

 

Sources

https://www.reuters.com/

https://in.investing.com/