Financial markets are now completely dependent on the geopolitical situation in Eastern Europe

Wall Street closed in the red due to continued uncertainty surrounding the war in Ukraine. Russian terrorists are simply bombing Ukrainian cities and shooting civilians (in Kharkiv, Chernihiv, Sumy, Kyiv, and many smaller towns like Borodyanka). The number of civilian casualties is growing rapidly. Ukraine asks NATO countries to close the sky over Ukraine, but NATO refuses because it will directly interfere with the alliance in the war with Russia. As the stock market closed, the Dow Jones Index (US30) decreased by 0.29%, the S&P 500 Index (US500) lost 0.53%, and the NASDAQ Technology Index (US100) fell by 1.54%.

The US Financial Institutions Regulatory Authority (FINRA) has frozen over-the-counter trading in shares of several Russian companies listed in the United States.

Ukraine's Zaporizhzhia nuclear power plant, the largest of its kind in Europe, caught fire on Friday morning after being attacked by Russian forces. Russian troops continued to surround and attack Ukrainian cities.

Mariupol, the main port on the Sea of Azov, was surrounded and heavily bombarded. Water and electricity have been cut off, and officials say they cannot evacuate the wounded. A video posted to Twitter from Mariupol and confirmed by Reuters shows parked cars on fire and continuous gunfire echoing in nearby apartment buildings.

Russian terrorists have captured the city of Kherson in southern Ukraine. Russian propaganda began to be broadcast on TV channels, and a crowd gathered the city to film footage of Kherson "joyfully" welcoming the Russian army. The same thing happened at the time in Donetsk and Luhansk. This is a tactic of Russian terrorists.

European stocks continue to decline amid fears about the consequences of sanctions against Russia. The German DAX (DE30) decreased by 2.16%, the French CAC 40 (FR40) lost 1.84%, the Spanish IBEX 35 (ES35) fell by 3.72%, and the British FTSE 100 (UK100) lost 2.57%. According to analysts, the rise in commodity prices after Russia's attack on Ukraine, especially oil and natural gas, has reached such proportions that a further depreciation of the euro could drive inflation out of control in Europe. However, the ECB has been reluctant to respond to the situation so far, and it's likely that the ECB's monetary policy will not change until the second half of 2022. The impact of rising energy and gas prices could undermine the recovery in industrial and private consumption that was expected after the easing of COVID-19 restrictions and is likely to slow the normalization of European Central Bank policy.

Meanwhile, the London Stock Exchange (LSE) stopped trading in Russian companies' depositary receipts, including Sberbank, Gazprom, Lukoil, EN+, and Polyus. The Bank of Russia decided not to resume trading on the Moscow Exchange today (for the fifth day in a row). At the same time, the Moscow Exchange imposed a ban on short sales on the euro in the foreign exchange and stock markets. Russian authorities have banned Russian brokers from selling securities owned by foreigners. Investors are trying to get out of Russian investments, but this is complicated by the suspension of trading and Moscow's ban on the sale of foreign assets.

Asian markets are down today from the opening session. Japan's Nikkei 225 (JP225) lost 2.23%, Hong Kong's Hang Seng (HK50) decreased by 2.50%, Australia's S&P/ASX 200 (AU200) lost 0.57%. Japan's Nikkei index on Friday posted its biggest drop in almost two weeks amid an escalating situation in Ukraine. Japan's unemployment rate increased to 2.8% in January 2022 from 2.7% a month earlier.

China's pursuit of "shared prosperity" in the short term will focus on narrowing the growing wealth gap and shaping the country's approach to regulating with sectors deemed critical to the economy. Analysts expect the move to see the real estate sector receive more support from regulators, which accounts for a quarter of the economy. At the same time, Internet firms and technology companies will be targeted for repression due to the misallocation of capital.

Main market quotes:

S&P 500 (F) (US500) 4,363.49 -23.05 (-0.53%)

Dow Jones (US30) 33,794.66 -96.69 (-0.29%)

DAX (DE40) 13,698.40 -301.71 (-2.16%)

FTSE 100 (UK100) 7,238.85 -190.71 (-2.57%)

USD Index 97.74 +0.35 (+0.36%)

Important events for today:
  • – Japan Unemployment Rate (m/m) at 01:30 (GMT+2);
  • – UK Construction PMI (m/m) at 11:30 (GMT+2);
  • – Eurozone Retail Sales (m/m) at 12:00 (GMT+2);
  • – US Nonfarm Payrolls (m/m) at 15:30 (GMT+2);
  • – US Unemployment Rate (m/m) at 15:30 (GMT+2);
  • – Canada Unemployment Rate (m/m) at 15:30 (GMT+2);
  • – Canada Ivey PMI (m/m) at 17:00 (GMT+2).

by Justforex, 2022.03.04

We advise you to get acquainted with the daily forecasts for the major currency pairs.

This article reflects a personal opinion and should not be interpreted as an investment advice, and/or offer, and/or a persistent request for carrying out financial transactions, and/or a guarantee, and/or a forecast of future events.

Open Account

Get Free Analytics

* required fields