Daily Market Bulletin – 28 February 2022

Market Developments

Investors are on edge, as they monitor Russia-Ukraine military conflict and tightening sanctions from western countries against Russia.

EU Commission President Ms von der Leyen, announced on Sunday, that the European Union will finance the purchase and delivery of weapons and other equipment to Ukraine, will shut down EU airspace for Russians and cut-off important Russian banks from the SWIFT global payment system. [1]

Russian President Putin has put army deterrence forces on high combat alert, which reportedly includes the nuclear capabilities. [2]

Ukrainian and Russian delegations are expected to meet today for peace talks in Belarus, as per Russian news agency TASS. [3]

Energy giant BP announced on Sunday that it will exit its 19.75% shareholding in Russian Rosneft. [4]

Chinese EV maker Nio, which is listed in the US, announced yesterday a proposed secondary listing in the Hong Kong stock exchange. [5]

Main Asia-Pacific stock markets were mostly down and European futures trade lower, while US 10YR Yields retreat.

Safe-havens Japanese Yen and US Dollar attract flows, whereas main Commodity Currencies (CAD, AUD, NZD) are on the back foot against both.

Instruments Snapshot

EUR/USD is on the back foot but tries to retake 1.1150.

GBP/USD is also downbeat, but reclaims 1.3350.

USD/JPY trades mixed around 115.00, as both currencies attract flows.

USD/CAD is up but rejects 1.2800, erasing some of the gains.

AUD/USD is in negative territory but tries to reclaim 0.7200.

NZD/USD trades in similar mood, trying to return above 0.6700.

GER30 is down, but off its lows and reclaims 14,200.

US30 is on the defensive, but tries to hold 33,600.

USOIL rises above 96.50, after Friday's drop.

XAU/USD is upbeat above 1,905.

Economic Calendar Picks (GMT)

Today's calendar does not feature any major economic releases, but overnight, markets will turn to PMIs' from China and the monetary policy decision by the Reserve Bank of Australia (03:30).

Australia's central bank had announced the conclusion of its asset purchases program earlier in the month and interest rates stand 0.1% and are not projected to rise soon.

On the earnings front, Zoom stands out today, reporting after US markets close.

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 28 Feb 2022 https://ec.europa.eu/commission/presscorner/detail/en/STATEMENT_22_1441

2

Retrieved 28 Feb 2022 https://www.youtube.com/watch

3

Retrieved 28 Feb 2022 https://tass.com/politics/1412755

4

Retrieved 28 Feb 2022 https://www.bp.com/en/global/corporate/news-and-insights/press-releases/bp-to-exit-rosneft-shareholding.html

5

Retrieved 04 Dec 2022 https://ir.nio.com/news-events/news-releases/news-release-details/nio-inc-announces-proposed-secondary-listing-stock

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