Erik Erik Erik

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.

Disclaimer

The Saxo Bank Group entities each provide execution-only service and access to Analysis permitting a person to view and/or use content available on or via the website. This content is not intended to and does not change or expand on the execution-only service. Such access and use are at all times subject to (i) The Terms of Use; (ii) Full Disclaimer; (iii) The Risk Warning; (iv) the Rules of Engagement and (v) Notices applying to Saxo News & Research and/or its content in addition (where relevant) to the terms governing the use of hyperlinks on the website of a member of the Saxo Bank Group by which access to Saxo News & Research is gained. Such content is therefore provided as no more than information. In particular no advice is intended to be provided or to be relied on as provided nor endorsed by any Saxo Bank Group entity; nor is it to be construed as solicitation or an incentive provided to subscribe for or sell or purchase any financial instrument. All trading or investments you make must be pursuant to your own unprompted and informed self-directed decision. As such no Saxo Bank Group entity will have or be liable for any losses that you may sustain as a result of any investment decision made in reliance on information which is available on Saxo News & Research or as a result of the use of the Saxo News & Research. Orders given and trades effected are deemed intended to be given or effected for the account of the customer with the Saxo Bank Group entity operating in the jurisdiction in which the customer resides and/or with whom the customer opened and maintains his/her trading account. Saxo News & Research does not contain (and should not be construed as containing) financial, investment, tax or trading advice or advice of any sort offered, recommended or endorsed by Saxo Bank Group and should not be construed as a record of our trading prices, or as an offer, incentive or solicitation for the subscription, sale or purchase in any financial instrument. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, would be considered as a marketing communication under relevant laws.

Please read our disclaimers:
Notification on Non-Independent Investment Research (https://www.home.saxo/legal/niird/notification)
Full disclaimer (https://www.home.saxo/legal/disclaimer/saxo-disclaimer)
Full disclaimer (https://www.home.saxo/legal/saxoselect-disclaimer/disclaimer)

Saxo Bank A/S (Headquarters)
Philip Heymans Alle 15
2900
Hellerup
Denmark

Contact Saxo

Select region

International
International

Trade responsibly
All trading carries risk. Read more. To help you understand the risks involved we have put together a series of Key Information Documents (KIDs) highlighting the risks and rewards related to each product. Read more

This website can be accessed worldwide however the information on the website is related to Saxo Bank A/S and is not specific to any entity of Saxo Bank Group. All clients will directly engage with Saxo Bank A/S and all client agreements will be entered into with Saxo Bank A/S and thus governed by Danish Law.

Apple and the Apple logo are trademarks of Apple Inc, registered in the US and other countries and regions. App Store is a service mark of Apple Inc. Google Play and the Google Play logo are trademarks of Google LLC.