Daily Market Bulletin – 16 February 2022

Market Developments

Markets try to remain upbeat, after yesterday's optimism for a de-escalation of the Russia-Ukraine tensions.

This was sparked by an announcement from Ministry of Defense of the Russian Federation, that some of its troops had completed their tasks and were withdrawing from their position near Ukraine. [1]

However, NATO Secretary General and US President Biden noted that this has not yet been verified. [2], [3]. Russian President Putin met with German Chancellor Olaf Scholz yesterday, saying that he does not want war in Europe, but Russia's concerns have not been addressed. [4]

On economic news, China consumer and factory inflation slowed-down in January, with CPI rising 0.9% y/y and PPI +9.1% y/y/. On the other hand, UK's Headline CPI Inflation ticked up to +5.5% y/y in January, compared to +5.4% prior.

Airbnb's Revenue surged 78% year-over-year in Q4 2021, to $1.5 billion, which was higher than the pre-pandemic Q4 2019. It also had 73.4 million Nights and Experiences Booked, which constituted solid growth year-over-year, but were lower than the previous quarter (79.7 million). [5]

The company offered upbeat guidance for Q1 2022, as it expects Nights and Experiences Booked to exceed Q1 2019 levels and hit new records. Airbnb's stock rose after-hours, following the report.

Australian Biotech firm CSL announced today net profit after tax of US$1.76 billion for the half-year that ended 31 December 2021, down 3%. Revenues rose 3% year-over-year, to US$ 6.041 billion. [6]

CSL also said that its expects its recent US$11.7 billion bid for Vifor Pharma, to close by the end of fiscal 2022. CSL.au surged after the results and closed the day with gains of nearly 9%.

Main Asia-Pacific stock markets strenghened, while European futures appear a bit subdued. On the FX front, the Japanese Yen and the US Dollar retreat, while are main Commodity Currencies are upbeat against them.

Instruments Snapshot

EUR/USD stays on the front, trading above 1.1350.

GBP/USD is upbeat and tries once again to surpass 1.3550.

USD/JPY steadies above 115.50.

USD/CAD is soft, but holds 1.2700.

AUD/USD extends gains beyond 0.7150.

NZD/USD stays on the offensive, trying to take 0.6650 out.

GER30 is cautious around 15,400, after yesterday's rally.

US30 steadies above 34,900.

USOIL finds support and reclaims 92.50, after Tuesday's slump.

XAU/USD trades with positive undertone, probing 1,855.

Economic Calendar Picks (GMT)

Market participants await Fed's minutes from the January monetary policy decision (19:00), for more insights into the officials' thinking.

Before that, we expect US Retails Sales (13:30) and Industrial Production (14:15), as well as Canada's CPI Inflation (13:30). At the beginning of Thursday, focus will shift to Australia's Employment figures (00:30).

Nvidia dominates today's earnings calendar in the US, reporting after the bell, along with Door Dash and Shopify.

See the economic calendar here.

Nikos Tzabouras

Senior Market Specialist

Nikos Tzabouras is a graduate of the Department of International & European Economic Studies at the Athens University of Economics and Business. He has a long time presence at FXCM, as he joined the company in 2011. He has served from multiple positions, but specializes in financial market analysis and commentary.

With his educational background in international relations, he emphasizes not only on Technical Analysis but also in Fundamental Analysis and Geopolitics – which have been having increasing impact on financial markets. He has longtime experience in market analysis and as a host of educational trading courses via online and in-person sessions and conferences.

References

1

Retrieved 16 Feb 2022 https://eng.mil.ru/en/news_page/country/more.htm

2

Retrieved 16 Feb 2022 https://www.nato.int/cps/en/natohq/opinions_191832.htm

3

Retrieved 16 Feb 2022 https://www.whitehouse.gov/briefing-room/speeches-remarks/2022/02/15/remarks-by-president-biden-providing-an-update-on-russia-and-ukraine/

4

Retrieved 16 Feb 2022 https://www.youtube.com/watch

5

Retrieved 16 Feb 2022 https://s26.q4cdn.com/656283129/files/doc_financials/2021/q4/Airbnb_Q4-2021-Shareholder-Letter_Final.pdf

6

Retrieved 01 Jul 2022 https://investors.csl.com/site/PDF/ce7ea2be-f61e-42c6-a3ae-95c3ea780695/HalfYearResultsAnnouncement

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