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
Outrageous Predictions 2023: The War Economy
- The constantly growing global need for energy drives the world's richest to huddle up and launch a R&D project in a size the world hasn't seen since the Manhattan Project gave the US the first atomic bomb.
French President Macron resignsThe political stalemate in France and the rise of Marie Le Pen following the 2022 elections corners President Macron, forcing him to give up on politics and resign from his position. At least for now.
Gold rockets to USD 3,000 as central banks fail on inflation mandateAs markets and central banks realise that the idea that inflation is transitory is wrong, and that prices will remain higher for longer, gold is sent through the roof, hitting a price tag of USD 3,000
EU Army forces EU down path to full unionWith continued challenges in the region and a US military that isn't aggressively enacting its former role as global policeman, the European Union agrees to create its own armed forces, bringing the whole region closer.
A country agrees to ban all meat production by 2030In an effort to become one of the global leaders on the path to net-zero emissions, one country decides to not only put a heavy tax on meat, but to ban domestic production entirely.
UK holds UnBrexit referendumFollowing a recession and domestic pressure, the United Kingdom is thrown into political turmoil that will end with a vote to wind back Brexit.
Widespread price controls are introduced to cap official inflationHistory tells us that with the war economy comes rationing and price controls. And this time is no different, as policymakers introduce strict price controls that lead to a range of unintended consequences.
OPEC+ & Chindia walk out of the IMF, agree to trade with new reserve assetSanctions against Russia have caused widespread turmoil due to US Dollar moves in countries across the globe that don't consider the US an ally. To relieve themselves from this, they leave the IMF and create a new reserve asset.
USDJPY fixed to the USD at 200 as Japan overhauls financial systemFollowing the challenges that faced the Japanese Yen in 2022, the Bank of Japan attempts to keep the currency from sliding. Unsuccessful on the long-term, Japan will launch a reset of its entire financial system.
Tax haven ban kills private equityWith the war economy comes an increased focus on national interests and sovereign nations' ability to assert themselves. In that regard, the OECD countries turn their attention on tax havens and pull the big guns out, banning them altogether.