Markets unnerved by tensions with Russia

Equity markets fell sharply yesterday, particularly in the US, after a US official warned of an “imminent invasion” of Ukraine by Russia. The flight of investors to safe havens such as US Treasuries and gold resumed: the US 10-year yield fell from 2.03% to 1.96%. The subsequent announcement of a meeting between the US and Russian heads of diplomacy next week of course had the opposite effect: stock market futures rebounded and rates rose slightly. The EUR/USD exchange rate is stable at around 1.136-1.137.

The markets appear disoriented in a context already made uncertain and unfavourable by the monetary tightening that accompanies the surge in inflation. The small rise in weekly US jobless claims does not challenge the downward trend that reflects the decline in the Omicron wave. In other words, wage pressures are not about to subside and the Fed will not be able to count on a moderation in core inflation until probably the end of the year.

Energyscan economics news

UK retail sales rebounded by 1.9% in January after a sharp decline in December, in line with what happened in the US. The economic agenda is not very full today. Geopolitical risk should continue to be the main market mover.

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

You might also read :

ES-power
July 29, 2021

EUAs rose alongside the stronger energy complex

The power spot prices plunged in northwestern Europe yesterday amid forecasts of surging wind output, stronger solar generation, slightly improved French nuclear production and weaker…
ES-economy
February 10, 2022

US inflation rate expected to rise above 7

There is decidedly little happening in the markets this week apart from a fairly sharp rebound in equities, buoyed by strong corporate results, but that…
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!

[booked-calendar]