Morning Brew March 4 2022
Senior Relationship Manager
Summary: Zaporizhzhia Nuclear Power Plant
Equities are under pressure this morning on a fire at the Zaporizhzhia Nuclear Power Plant, but can recover a little on news that the fire has been extinguished. Yesterday equites closed lower on rising oil, inflationary pressure and overall uncertainty. News reports that shooting at Zaporizhzhia has stopped and no radiation leaked.
The US 500 is trading at 4341, the US Tech 100 at 13953 and the GER40 at 13420. The US Tech 100 found some support at the 200d line.
EURUSD fell to 1.1020 with the volatility back at 10% and GBPUSD 1.3330 USDJPY remains at 115.50 and the USD Index breaks above 98.
Gold and Silver are at 1935 and 25.20.
Oil fell yesterday on news that a deal with Iran may allow more Iranian exports.
BlackRock suspends purchases of Russian securities in active and passive funds, other asset managers as well as Index providers join.
Tesla and Amazon suffered significant losses, after the Biden Administration announced a 4500USD premium for EVs that are US made in a Unionized factory.
Equities rose off the lows and closed in the green with app 1.5% for the US Indexes
The war in Ukraine continues and Russia entered the town Kherson while government sanctions and corporate boycotts are being stepped up against Russia.
Besides Ukraine and Iran Talks, watch for the EU retail sales and the US Labor data at 14:30 today.
Latest Market Insights
Q4 Outlook 2022: Winter is coming
- Winter is coming to the financial markets as central banks are tightening their grip. How spring will look is still a question.
European energy crisis: it will get worse before it gets betterThe winter in Europe will be tough, but whether the result is political chaos or sustainable, innovative solutions is still undecided.
A difficult and volatile quarter awaitsAs the year draws to an end, commodities continue to be at centre stage of the world with growth pockets political uncertainty.
The bright side: crises drive innovationThe positive spin on crises is that they come with solutions. It is worrisome that deglobalisation may be a response to this crisis.
Green transformation in China: renewable energy and beyondGoing green, China needs to span numerous energy sources to ensure stability, as every source comes with a challenge.
Asia: Intermittent solutions, but a faster renewable adoption curveAsian energy supply is being squeezed. This and the adoption of renewables may change the investment sentiment in the region.
FX: A Fed thaw needed to deliver a sustained USD turn lowerThe US Dollar can keep momentum when the Federal Reserve continues to tighten, leaving the rest to play to their drum.
Autumn can become ugly for equities and bond holders. Comfort for Dollar longsTechnical analysis suggests that equities could face a tough Q4 as could fixed income. US Dollar positions could provide some upside.
The next stock market sector to watch, with stocks going nuclearAs the world scrambles to find affordable, sustainable energy, nuclear is getting attention from politicians and investors alike.
The crypto space is getting cold when the hype disappearsCryptocurrencies face a winter of their own as retail investors and governments are asking tough questions.