Daily Market Bulletin – 22 February 2022
Market Developments
Sentiment took a nosedive yesterday from the latest news around Ukraine and investors remain on edge as they monitor the news.
Russian President Putin recognized two separatist territories on Eastern Ukraine yesterday, Donetsk and Lugansk [1]. As per Interfax, the relevant decrees state that Russian armed forces will perform "peacekeeping functions in the Donetsk People's Republic" [2]
Western countries condemned the decision, with the White House saying that it "contradicts Russia's commitments under the Minsk agreements". US President Biden already announced sanctions against these territories and US Ambassador to UN, Linda Thomas-Greenfield talked of further measures on Tuesday, to "hold Russia accountable for this clear violation of international law and Ukraine's sovereignty and territorial integrity" [4].
Fed's Ms Bowman (voter) said on Monday that she "will be watching the data closely to judge the appropriate size of an increase at the March meeting" and that she supports "prompt and decisive action" to bring inflation down. [5]
On the Covid-19 front, UK PM Johnson announced yesterday that all remaining domestic restrictions in law in England will be removed, from this Thursday. [6].
Banking giant HSBC reported Profit before tax of $18.9bn in 2021, from $8.777 in the prior year and announced a new share buy-back of up to $1bn. CEO Noel Quinn, commented that "All of our regions were profitable and we saw growth in the fourth quarter of 2021 in many of our business lines". [7].
Australian retailer Coles Group announced a 1% rise in 1H FY2022 Revenue, to $A 20.593 billion, although Net Profit after tax (NPAT) dropped 2%, to A$549 million. The firm declared a A$33 cents/share interim dividend [8].Markets seemed to like the results, as COL.au surged more than 3% today. Rival supermarket chain Woolworths, releases its financial results on Wednesday.
Main Asia-Pacific stock markets plunged on fresh Ukraine jitters, European futures are cautious and US10YT Yields extend drop.
In the FX space, things appear calmer, with safe-havens Japanese Yen and US Dollar mixed, while Antipodeans (AUD, NZD) were upbeat against both.
Instruments Snapshot
EUR/USD is soft around 1.1300.
GBP/USD is tepid below 1.3600.
USD/JPY is soft, but defends 114.50
USD/CAD shows indecision around 1.2750.
AUD/USD is upbeat and retests 0.7200.
NZD/USD is on the front foot above 0.6700.
GER30 extends yesterday's plunge and tests 14,400.
US30 is downbeat, trying to hold 33,600.
USOIL is cautious below $94.00.
XAU/USD trades with positive undertone and eying June 2021 highs (1,916).
Economic Calendar Picks (GMT)
Germany's IFO Business Climate (09:00) and preliminary PMIs from the US (14:45), stand out from today's relatively light economic calendar.
Tuesday starts with the monetary policy decision by the Reserve Bank of New Zealand (01:00), which has already delivered two rate hikes in the last meetings.
See the economic calendar here.
Nikos Tzabouras
Senior Financial Editorial Writer
Nikos Tzabouras is a graduate of the Department of International & European Economic Studies at the Athens University of Economics and Business. With extensive experience in market analysis and a strong foundation in international relations, he brings a unique perspective to financial markets. Nikos emphasizes not only technical analysis but also on fundamentals and the growing influence of geopolitics on financial trends.
As a Senior Financial Editorial Writer, he delivers comprehensive and forward-looking insights across a wide range of asset classes, including equities, commodities, and currencies. His work explores how macroeconomic events, political developments, and global policies impact market dynamics, providing readers with a deeper understanding of both short-term movements and long-term trends.
References
| Retrieved 22 Feb 2022 http://en.kremlin.ru/events/president/news/67829 | |
| Retrieved 22 Feb 2022 https://interfax.com/newsroom/top-stories/73940/ | |
| Retrieved 22 Feb 2022 https://usun.usmission.gov/remarks-by-ambassador-linda-thomas-greenfield-at-a-un-security-council-emergency-meeting-on-ukraine/ | |
| Retrieved 22 Feb 2022 https://www.federalreserve.gov/newsevents/speech/bowman20220221a.htm | |
| Retrieved 22 Feb 2022 https://www.gov.uk/government/speeches/pm-statement-at-covid-press-conference-21-february-2022 | |
| Retrieved 22 Feb 2022 https://www.hsbc.com/news-and-media/media-releases/2022/hsbc-holdings-plc-annual-results-2021 | |
| Retrieved 10 Apr 2026 https://www.colesgroup.com.au/investors/ |
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