Risk-off sentiment drives global stocks lower as Russia begins military invasion of Ukraine. Safe-haven demand is boosted with the DXY gaining 0.4% during the Asian session.
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FX Rates
February 24, 2022Rates are not real time. Rates are today's indicative mid-market rates as of time of publishing, which may vary. Please contact SVB for a current quote.
Source: BloombergGBP/USD 1.3452 GBP/EUR 1.1964 EUR/USD 1.1244 USD/CAD 1.2809 EUR/CHF 1.0355 EUR/SEK 10.7099 EUR/NOK 10.1177 EUR/DKK 7.4406 USD/ILS 3.2519 AUD/USD 0.7188 NZD/USD 0.6720 USD/SGD 1.3514 USD/JPY 114.75 USD/CNH 6.3162 USD/INR 75.4625 EUR/ILS 3.6564 GBP/ILS 4.3744 USD/ZAR 15.2494
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GBP
Boris Johnson has warned London Bank chief to expect tougher sanctions on Russian finances. This comes as many of the Russian elite have used the UK’s ‘Golden Visa’ Scheme to base their operations in the UK’s financial center.
Chancellor Rishi Sunak has set out his approach for lower taxes and fiscal responsibility, positioning himself as a ‘tax cutting’ Chancellor, following a tenure which has seen tax increases and pandemic stimulus spending.
The FTSE has plunged at open down -2.55%, and sterling is trading 0.5% lower against the dollar.
EURThe EU will ask member states to set out plans to withdraw pandemic fiscal support beginning in 2023, as the bloc transitions into an endemic stage, pleading that budget policy normalizes to pre-pandemic spending.
EU sanctions have targeted 23 high-ranking Russian officials and are likely to be toughened today following the escalation of conflict in Ukraine.
European equities have declined since the open, with the STOXX 50 and DAX trading over 3.5% lower. EURUSD trades down -0.5% as we print.
USDThe US may tap into its emergency oil supply to help counter a surge in prices, as Brent Crude soars past $100 a barrel. US equities struggled yesterday, with the NASDAQ and S&P 500 closing down 2.57% and 1.84% respectively. The DXY trades 0.45% higher as we print, as the Russia/Ukraine conflict boosts demand for the safe-haven.
President Biden and G7 leaders are due to meet today to co-ordinate their response to what has been described as an “unprovoked” attack on Ukraine. US sanctions will be reviewed later to take a tougher stance against Russia.
Initial Jobless claims are expected to slide with surveyed expectations at 235,000, down 5.2% from the previous week.
ASIA/PACIFICThe Bank of Korea has warned inflation will stay above 3% for a ‘considerable’ time, leaving rates at 1.25% and pledging inaction until a new leader is appointed.
The PBOC has diverged from Fed policy, however ex-MPC members have stressed it will still be able to cut rates if required to attract investors to the Chinese mainland.
Australia’s business investment gained 1.1% in Q4 following the same drop in Q1-Q3 2021.
The Nikkei and Hang Seng finished lower by -1.81% and -3.21%. USDJPY trades up 0.3%.
ILSThe dollar has rallied against the shekel, trading 1.05% higher to reach YTD highs of 3.29 earlier this morning before reversing some of its gains.Data & EventsG7 Meeting to discuss Russia-Ukraine conflict.
France Feb. Consumer Confidence
Italy Dec. Industrial sales.
US Q4 GDP and initial jobless claims.
Russia-UkraineFollowing a pre-dawn address, President Vladimir Putin has ordered a full-scale military invasion of Ukraine, citing the need to “demilitarize” the country. Explosions have been heard across major cities and airports, whilst troops have been reported crossing from Russia, Belarus and the disputed region of Crimea. Ukraine has implemented martial law, begun conscription and requested assistance from the international community.
Moscow’s Moex loses 45%, and the ruble trades down 6.63% as the western world plans to implement severe sanctions against the Russian economy. Worldwide equities have plunged following the declaration of war with most European and Asian markets down between 2-3%.
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