US ramps up spending in response to Ukraine crisis. European markets are expected to feel the pain of western sanctions with the ECB offering additional stimulus.
March 1, 2022
GBP/USD 1.3409 GBP/EUR 1.1986 EUR/USD 1.1187 USD/CAD 1.2681 EUR/CHF 1.0248 EUR/SEK 10.6875 EUR/NOK 9.8878 EUR/DKK 7.4383 USD/ILS 3.2294 AUD/USD 0.7268 NZD/USD 0.6768 USD/SGD 1.3551 USD/JPY 114.79 USD/CNH 6.3152 USD/INR 75.5810 EUR/ILS 3.6126 GBP/ILS 4.3304 USD/ZAR 15.3731
The UK is continuing to work through a ‘hit list’ of Russian oligarchs to face sanctions. UK warns of the UK energy price shock, with Boris Johnson telling cabinet colleagues that sanctions against Russia, will further exacerbate energy problems.
UK companies feel post-Brexit rules pain, with promises of de-regulation made during the referendum campaign. This commitment has not been realized in the last year since the UK’s legal exit from the EU
The FTSE outperforms other European equities since today’s open, up 0.1% as we print. The pound trades marginally higher against both the euro and the dollar.EUR
Turkey has said it will restrict Russian warships from using waterways it controls to transit into the Black Sea, exercising its control over the Turkish straits granted by the 1936.
The ECB will guarantee market liquidity and full access for citizens to payments systems. Meanwhile, Italy’s EU consumer harmonized inflation is expected to rise 5.5% year on year in February, while prices increases have also picked up in Germany.
European equities have been relatively flat with the STOXX down -0.10% and the DAX down -0.15%.USD
Congress has stated it will approve whatever funding is necessary to respond to the Ukraine crisis. The White House has told lawmakers that it would require $3 billion in humanitarian and security needs related to the Ukraine Crisis.
Biden will call on congress to revive stalled climate legislation in today’s state of the union address. This will pitch a package of tax credits and climate spending.
The ISM manufacturing index probably edged up to 58 in February from 57.6. Growth in construction may have slowed to 0.1% from 0.2% last month.
Yesterday was a mixed day for US stocks, the NASDAQ closed up 0.41%, and the S&P500 closed down -0.25%.ASIA/PACIFIC
Asian shares mostly rose, stocks advanced in Japan and China, where data signaled an improvement in manufacturing. China’s top health experts raised the possibility that the country could attempt to live with covid at some point. South Korea exports rose 20.6% YoY last month up 15.2% from January.
The PBOC set a weaker-than-expected reference rate for the yuan, a sign of its discomfort with the currency’s rally.
Asian equities had a positive day. MSCI Asia pacific finished higher 0.56% and the ASX also closed up 0.71%. The shanghai composite finished up 0.21%.ILS
USDILS trades lower as we print at 3.206, down 1.5% from yesterday’s highs at 3.265.Data & EventsUS - State of the Union Address
EU - Markit Manufacturing PMI
IT - Feb CPI
DE - Feb CPI
OPEC meets to discuss Ukraine
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