Stocks have collapsed as Treasuries rally and a major rally in Oil and Gold as President Putin recognizes the breakaway regions of Ukraine and orders troops into the country. The West prepares more sanctions, with USD and JPY bid. NZD also holds Friday’s bid ahead of RBNZ. Gold rallied to test $1914, Oil rallied up 3.4%. Yields fell to 1.858 from 1.91 from Friday’s close. Asian markets sank (Nikkei -1.7%, Hang Seng worst performer -3.2%). VIX futures trade -5.7%, EuroStoxx FUTS -3.44%.
- USD up(USDIndex 96.11). USD on bid next resistance 96.30 from 14/2.
- US Yields 10-yr tanked from 1.932 close Friday to 1.91% now to test 1.90.
- Equities – USA500 -32 pts (-0.72%) 4348 on Friday. US500 FUTS collapsed (-2.0%) to 4230 earlier, back to 4285 now.
- USOil – Topped at $94.00, back to under $92.00 now and trades at $91.72.
- Gold – Holds over psychological $1900 now back to $1908.
- Bitcoin broke lower to trade at $36,800.
- FX markets – EURUSD under 1.1300, USDJPY holds below 115.00 to 114.50 earlier and 114.75 now. Cable breaches under 1.3600 and trades at 1.3590.
Overnight – JPY CPI data (0.8% vs 1.1% & 0.5% previously), but all focus was centred on geopolitics.
European Open – The March 10-year Bund future is up 49 ticks, US futures are outperforming as investors head for safety while keeping a close eye on the developing situation in east Ukraine. The standoff between the West and Russia will keep pressure on stock markets, which already sold off yesterday and are set to correct even more today. DAX and FTSE 100 futures are currently down -1.1% and –0.7% respectively.
Today – German Ifo, US Flash PMIs, Speeches from Fed’s Bostic and BoE’s Ramsden, Earnings HSBC (beta), Home Depot.
Biggest FX Mover @ (07:30 GMT) NZDCHF (+0.27%) Rallied from lows of 0.6120 earlier, popped to 0.6155 and trades at 0.6140 now. MAs now aligned lower, MACD signal line & histogram significantly below 0 line, RSI 43.25 & falling, OB zone, H1 ATR 0.00010, Daily ATR 0.0048.
Click here to access our Economic Calendar
Stuart Cowell
Head Market Analyst
Disclaimer: This material is provided as a general marketing communication for information purposes only and does not constitute an independent investment research. Nothing in this communication contains, or should be considered as containing, an investment advice or an investment recommendation or a solicitation for the purpose of buying or selling of any financial instrument. All information provided is gathered from reputable sources and any information containing an indication of past performance is not a guarantee or reliable indicator of future performance. Users acknowledge that any investment in Leveraged Products is characterized by a certain degree of uncertainty and that any investment of this nature involves a high level of risk for which the users are solely responsible and liable. We assume no liability for any loss arising from any investment made based on the information provided in this communication. This communication must not be reproduced or further distribution.
