Flight to safety

Tensions with Russia have risen after Vladimir Putin officially recognised the two breakaway provinces around the Ukrainian cities of Donetsk and Luhansk and ordered Russian forces to be sent in to “keep the peace”. Obviously, this decision will be followed by economic sanctions against Russia and there is a high degree of uncertainty about the course and consequences of this crisis. In the financial markets, this is reflected in the continued decline in the equity markets and a sharp fall in bond yields, even though inflationary fears and the tightening of monetary policies remain as relevant as ever. The US 10-year yield is on the verge of erasing all its rise since the beginning of the month, at 1.86%. The EUR/USD exchange rate is testing the 1.13 support. The price of gold rises.

Sharp rebound in European services PMIs yesterday, confirming the recovery in activity after Omicron. US PMIs today, but also the Conference Board consumer survey in the US and the IFO survey in Germany. These are important indicators but will probably have no impact on the markets in the current context.

Share this news :
Share on twitter
Share on linkedin
Share on email

You might also read :

July 19, 2021

Fear of the delta variant prevails

After US equities recorded their first decline in 4 weeks last week, Asian markets fell on growing concerns over the quick spread of the Covid delta…
March 15, 2021

EUAs extended their bullish rally

The European power spot prices for today rebounded compared to Friday amid forecasts of lower temperatures and dropping wind output. Prices reached 50.35€/MWh on average…
Join EnergyScan

Get more analysis and data with our Premium subscription

Ask for a free trial here

Don’t have an account yet?  Sign up here!