Monday 21st March 2022 : Oil gains; Investors spooked

IC Markets No Comments

Global Markets:

  • Asian Stock Markets : Nikkei up 0.65%, Shanghai Composite up 0.08%, Hang Seng down 1.15%, ASX down 0.22%
  • Commodities : Gold at $1922.90 (-0.33%), Silver at $25.12 (+0.13%), Brent Oil at $110.91 (+2.76%), WTI Oil at $106.34 (+3.15%)
  • Rates : US 10-year yield at 2.149, UK 10-year yield at 1.493, Germany 10-year yield at 0.368

News & Data:

  • (USD) Existing Home Sales 6.02M vs 6.10M expected
  • (CAD) Retail Sales m/m 3.20% vs 2.40% expected
  • (CAD) Core Retail Sales m/m 2.50% vs 2.30% expected

Markets Update:

Share markets were in a sober mood on Monday as fighting in Ukraine raged on with no sign of stopping, leaving investors clutching at hopes for an eventual peace deal, while oil prices climbed anew as supplies remained tight. Turkey’s foreign minister did say on Sunday that Russia and Ukraine were nearing agreement on “critical” issues and he was hopeful for a ceasefire. Investors were also anxiously waiting to see if Russia would meet more interest repayments this week. It must pay $615 million in coupons this month while on April 4, a $2 billion bond comes due.

Hong Kong’s Hang Seng index, which rose more than 1% in early trade, erased gains and fell into negative territory as it slipped 1.02%. The city’s benchmark finished more than 4% higher last week following a volatile week which swung between big gains and losses. Trading in the Hong Kong-listed shares of China Evergrande and its property services and new energy vehicle unit was halted on Monday, according to exchange notices. Evergrande said the trading halt was related to the pending release of an announcement containing inside information.

Oil prices were higher in the afternoon of Asia trading hours, with international benchmark Brent crude futures up 3.2% to $111.38 per barrel. U.S. crude futures climbed 3.26% to $108.11 per barrel. The price of oil has been volatile since Russia’s invasion of Ukraine, rising rapidly to highs not seen in 13 years before falling sharply. As of Monday afternoon Singapore time, Brent is up more than 40% for the year.

Upcoming Events:

Monday, March 21, 2022   

  • 07:30 AM GMT – (EUR) ECB President Lagarde Speaks
  • 04:00 PM GMT – (USD) Fed Chair Powell Speaks

Tuesday, March 22, 2022   

  • 03:30 AM GMT – (AUD) RBA Gov Lowe Speaks
  • 01:15 PM GMT – (EUR) ECB President Lagarde Speaks
  • 03:15 PM GMT – (CHF) SNB Chairman Jordan Speaks

Wednesday, March 23, 2022   

  • 07:00 AM GMT – (GBP) CPI y/y
  • 12:00 PM GMT – (GBP) BOE Gov Bailey Speaks
  • 12:00 PM GMT – (USD) Fed Chair Powell Speaks
  • Tentative – (GBP) Annual Budget Release
  • 02:30 PM GMT – (USD) Crude Oil Inventories
  • 07:00 PM GMT – (USD) FOMC Member Bullard Speaks

Thursday, March 24, 2022   

  • 01:05 AM GMT – (USD) FOMC Member Bullard Speaks
  • 08:15 AM GMT – (EUR) French Flash Services PMI
  • 08:30 AM GMT – (CHF) SNB Monetary Policy Assessment
  • 08:30 AM GMT – (CHF) SNB Policy Rate
  • 08:30 AM GMT – (EUR) German Flash Manufacturing PMI
  • 08:30 AM GMT – (EUR) German Flash Services PMI
  • 09:30 AM GMT – (CHF) SNB Press Conference
  • 09:30 AM GMT – (GBP) Flash Manufacturing PMI
  • 09:30 AM GMT – (GBP) Flash Services PMI
  • 12:30 PM GMT – (USD) Core Durable Goods Orders m/m
  • 12:30 PM GMT – (USD) Durable Goods Orders m/m
  • 12:30 PM GMT – (USD) Unemployment Claims
  • 01:10 PM GMT – (USD) FOMC Member Waller Speaks
  • 01:45 PM GMT – (USD) Flash Manufacturing PMI
  • 01:45 PM GMT – (USD) Flash Services PMI

Friday, March 25, 2022   

  • 07:00 AM GMT – (GBP) Retail Sales m/m
  • 09:00 AM GMT – (EUR) German ifo Business Climate
  • 02:00 PM GMT – (USD) Revised UoM Consumer Sentiment