07 March 2022
World Market – Headlines
In Asia, oil prices are up 10%, and the euro is on the verge of collapsing.
Tech stocks and banks push down Australian equities, while New Zealand shares tumble.
Oil price surges to highest since 2008 on delays in Iranian talks
Currency
Indian Rupee
After the United States and its European allies stated they were considering a ban on Russian crude oil imports, bringing oil prices to multi-year highs, the Indian rupee is projected to fall against the dollar.
According to a dealer at a private-sector bank, the rupee will likely open around 76.70 to 76.75 per dollar, up from 76.16 on Friday. In April 2020, the currency hit a new low of 76.91.
Other Currencies
As the Russian-Ukraine war showed no signs of abating, the euro continued to fall, and commodities of all kinds rose. Russia has described its assault, which began on February 24, as a “special military operation,” and has stated that it has no aspirations to conquer Ukraine.
Last week, safe-haven flows paired with the possibility of a more dovish ECB drove German 10-year bond yields down 32 basis points, while US yields fell 23 basis points to 1.738 percent.
The dollar was widely stronger, helped by a robust payrolls report, which merely reiterated market expectations for a Federal Reserve rate move this month. The dollar index was recently seen at 98.812, up 2.3 percent from the previous week.
Equity
Indian Equity
The Indian stock market is projected to open in the red, with the broader index in India gapping down by 415 points, according to SGX Nifty trends.
The BSE Sensex fell 769 points to 54,334, while the Nifty50 fell 253 points to 16,245 on March 4, forming a Spinning Top pattern, signifying indecisiveness among bulls and bears. The index plummeted 2.5 percent this week, forming a bearish candle on a weekly basis.
Other Markets
On Monday, Australian equities fell slightly as a Wall Street-led dip in local tech firms and banks overcame high gains in miners and energy sectors following a steady surge in commodities prices due to supply concerns from Russia.
The S&P/ASX 200 index was down 0.9% at 7,044.9 points, with the tech index leading losses.
In New Zealand, the benchmark S&P/NZX 50 index fell nearly 0.9% to 12,027.97.
The ongoing Russia-Ukraine conflict continues to weigh on investor sentiment globally, as shares in Asia-Pacific fell in early Monday trade as oil prices rose.
The Hang Seng index in Hong Kong led regional losses, falling 4.14 percent as HSBC shares fell 6.02 percent. The Shanghai composite fell 1.13 percent, while the Shenzhen component fell 2.076 percent in mainland China.
In Japan, the Nikkei 225 index fell 3.5 percent, with shares of robot manufacturer Fanuc down 7.72 percent, while the Topix index fell 3.12 percent.
The Kospi index in South Korea plummeted 2.41 percent. The S&P/ASX 200 index in Australia fell 1.19 percent.
Outside of Japan, MSCI’s broadest index of Asia-Pacific stocks fell 2.2 percent.
On Friday, Nikkei (.N225) futures were trading approximately 300 points lower than the cash close, while U.S. Treasury futures surged 10 ticks as investors sought safe-haven assets.
Oil
Oil prices jumped more than 10% in frantic trading on Monday, as the threat of a US and European ban on Russian products, as well as delays in Iranian talks, caused what was shaping up to be a significant stagflationary shock for global markets.
Due to delays in the prospective return of Iranian petroleum to global markets and as the US and its European allies explore banning Russian oil imports, oil prices have risen to their highest level since 2008.
Brent crude had risen $11.67, or 9.9%, to $129.78 a barrel, while WTI crude had risen $10.83, or 9.4%, to $126.51, putting both contracts on course for their largest daily percentage gains since May 2020.
Russia exports over 7 million barrels per day (bpd) of oil and processed products, accounting for about 7% of world production. Kazakhstan’s oil shipments from Russian ports have also been hampered in several ways.
Meanwhile, according to AAA, an automobile club, the average price of a gallon of gasoline in the United States touched $4.009 on Sunday, the highest since late July 2008. Consumers are paying 40 cents more a gallon than they were a week ago, and 57 cents more per month.
Economic Events
Economic Calendar | |||||
Monday, Mar 07, 2022 | |||||
| Time | Country | Event | Forecast | Previous |
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| 12:30 | EUR | German Factory Orders (MoM) (Jan) | 1.00% | 2.80% |
| 12:30 | GBP | Halifax House Price Index (MoM) (Feb) |
| 0.30% |
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