'Risk' continues its drop. CAD, AUD, NZD, equities all sliding further. Japan government official says FX stability is important FoxCon h
- ‘Risk’ continues its drop. CAD, AUD, NZD, equities all sliding further.
- Japan government official says FX stability is important
- FoxCon has halted output at is iPhone site in Shenzen, China
- Goldman Sachs expect the S&P to close the year at 4,700 … down on the year
- US National Security Adviser Sullivan says condemns Iran’s missile attack on Iraq
- PBOC sets the CNY reference rate at its weakest since the middle of February
- War in Ukraine – air raid sirens going off in (at least) 19 of 24 regions in Ukraine
- US Treasury yields up, USD/JPY also (highest in 5 years)
- UK – PM Johnson to travel to Saudis, considering prolonging use of coal power stations
- Biden and Zelensky spoke on Friday – Zelensky wants more action against Russia
- Weekend – world’s largest maker of gold, silver mining material suspends Europe production
- New Zealand to take steps to lower fuel prices
- Weekend – The US and China will meet for ‘high level’ talks on Ukraine
- Crypto – Concerns that EU vote coming on Monday could be a ‘de-facto’ ban of Bitcoin
- China Securities Journal say PBOC to cut interest rates further
- Russian attack in Ukraine just 15 miles from Poland – a “significant” development
- ICYMI – China shuts down city of 17.5m people (Shenzen)
- US Sunday evening equity index futures have a subdued opening, but Oil is lower.
- Trade ideas thread – Monday 14 March 2022
- Russia threatens to arrest, imprison US business people in the country
- Weekend_ Pentagon press sec Kirby said Russian forces are “broadening their target sets”
- China’s US embassy says it hasn’t heard Russia has asked China for military assistance
- US President Biden has returned early from his weekend at Camp David
- Chinese embassy in US comments on Russia has asked China for military assistance
- Weekend “hope” news – Ukraine says talks with Russia could yield results in days
- China has partially locked down the cities of Shanghai and Shenzhen
- Monday morning open levels – indicative forex prices – 14 March 2022
- UK media reports that Russia has requested military assistance from China re Ukraine war
- China reports 1524 local covid cases — a two-year high
- A Russian official said convoys of military aid from the West are “legitimate targets”
It was a weekend with a glimmer
of brighter news for Ukraine. Reports had it that there was progress
being made on talks with Russia on moves towards a tentative
ceasefire. The thing to bear in mind with reports like this is we
have had encouraging news like this before and each time Russian
forces continue their advance and their brutal war on the Ukrainian
people. Maybe its a glimmer of hope, maybe its a false one. In the
early hours of Asia Monday the Financial Times reported that Russia
was seeking military assistance from China. This put a bit of a
dampener on that ‘glimmer of hope’ news from the weekend.
Early
market movement saw small gains for EUR, AUD, NZD, GBP, CAD against
the USD. Upon the reopening of Globex for the week US equity index
futures saw a bid also. As I update now, though, well into
full-liquidity Asia trade, the weight of less positive news (air raid
sirens in Ukraine heralding more incoming Russian missile attacks,
lockdowns in China curtailing industrial production, Iranian missiles
fired into northern Iraq as a few examples) is giving the USD renewed
vigour at the expense of other currencies.
I
should mention the surging USD/JPY. It hit a 5-year high today as yields
on US Treasuries (selling of USTs) rose further. The Federal Open
Market Committee meeting is this week and hawkish expectations are
still on the rise. The monetary policy divergence between the Federal
Reserve and Bank of Japan is stark. This is not new news and has seen
USD/JPY trend strongly upwards for months now.
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