Morning Brew March 7 2022
Senior Relationship Manager
Summary: Stagflation fears weigh on risk
Risk Off sentiment remains the key market driver as the situation in Ukraine remains dramatic and stagflationary pressure.
Oil jumps massively higher to 130 on the US line up almost 10% from Friday, Gold hits 2000 and Equities are under pressure across board with the Dax down another 3% from Fridays dramatic loss to 12740.
The Dow Jones is trading at 33300, the S&P500 at 4280 and the Nasdaq 100 at 13620.
Bank of America sees the Oil price approaching 200 if Russia is banned from the energy market. We are already at the highest since 2008.
EURUSD fell below 1.09 and GBPUSD to 1.3212. EURCHF is trading at parity for the first time since in infamous SNB Event in 2015. The USD Index rose to above 99 over night to currently trade at 98.85 and 1 month EUR Vol rises to 12.
US 10 year yields fell to below 1.68% to currently trade at 1.73.
Bitcoin trades at 38000.
Economists are not expecting any intervention from the ECB until Q4 according to a Reuters Poll published over the weekend.
Be cautions with your positioning, market volatility is likely to remain high for the time being.
Physically Settled Futures:
FBONH2 will expire 7th March at 13:00 GMT.
FBTPH2, FGBLH2, FGBMH2, FGBSH2, FGBXH2, FOATH2 will expire 7th March at 16:00 GMT.
CH2 will expire 8th March at 10:00 GMT.
GASOILUKMAR22 will expire 8th March at 16:00 GMT.