Erik Schafhauser Zürich

Morning Brew March 8 2022

Morning Brew 1 minute to read
Erik
Erik Schafhauser

Senior Relationship Manager

Summary:  Nervousness prevails


Good Morning,

Volatility remains, coupled with risk off and severe deleveraging. Equities recovered initially yesterday but dopped in the late afternoon on no progress in talks between Ukraine and Russia as well as surging energy prices. US Indexes closed lower the Dow -2.37%, S&P -2.95%, Nasdaq -3.62%, the Dax had closed the opening gap yesterday and rose 600 points to 13100 only to fall back to currently 12560.

EURUSD fell to 10850 and GBPUSD to 1.3080, the USD Index settled above 99 for now.

Gold and silver remain in strong demand with Gold at above 2000 USD at 2010 and Silver at above 26 USD

Rising energy prices basically have the same impact as rate hikes in lowering overall inflation  as it drains liquidity and curbs demand. This could incur dovish tones at the ECB and Fed meetings Thursday and next week.

Russia is threatening to halt Natgas deliveries to Europe in retaliation to the sanctions.

There is significant danger of exploding vehicle prices on the sanctions against Russia as a large percentage of various metals is being mined in Russia. In the US, the average car is already 18% more expensive than last year due to the chip shortage, now with

Coinbase announced it blocked 25000 Russian wallets.

As the fallout from the sanctions becomes clearer, expect severe nervousness to prevail in either direction and adjust your risk.

Expiries

Physically Settled Futures:

FBTPH2, FGBLH2, FGBMH2, FGBSH2, FGBXH2, FOATH2 will expire 7th March at 16:00 GMT.

CH2 will expire 8th March at 10:00 GMT.

Expiring CFDs:

GASOILUKMAR22 will expire 8th March at 16:00 GMT.

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