Todays’ Market Summary
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Today, the US dollar index is declining for the 2nd day in a row.
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Yesterday, US stock indices fell for the second day in a row.
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Today, oil is rising in price for the 4th day in a row.
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Quotes of precious metals showed strong growth on Tuesday due to the continuation of the military conflict in Ukraine.
Top daily news
On Tuesday, the US dollar index fell on the back of a record trade deficit in January 2022 in the US. In addition, the decision to ban the import of Russian oil may spur US inflation. It was adopted with the aim of tightening anti-Russian sanctions. The tightening of mutual sanctions between Western countries and Russia caused a fall in stock indices and an increase in precious metals quotations.
Forex news
| Currency Pair | Change |
|---|---|
| EUR USD | +0.5% |
| GBP USD | +0.3% |
| USD JPY | +0.11% |
Today, the US dollar index is declining for the 2nd day in a row. This was supported by weak economic data. In January, the deficit of the United States Trade Balance updated a historical record and amounted to -$89.7 billion. In addition, on Tuesday, US President Joe Biden imposed a ban on Russian oil imports to the United States. This led to a strong increase in motor fuel prices in the US, which will continue to increase inflation. We can also note the strengthening of the euro for the 2nd day in a row before the regular meeting of the European Central Bank (ERB), which will be held tomorrow, March 10th. Investors do not exclude any positive statements against the backdrop of the economic and political crisis in Europe due to Ukraine. However, it must be said that there are signs of a slight stabilization. President of Ukraine Valdimir Zelensky said he was ready for more active negotiations with Russia. He did not rule out the discussion of the recognition of Crimea and Donbass, and also said that Ukraine no longer aspires to join NATO. This had a positive impact not only on the euro, but also on the currencies of all other European countries, including the British pound, Swiss franc and others. Tomorrow the Foreign Ministers of Russia and Ukraine will hold talks. This morning Japan released unexpectedly weak data on GDP (+4.6%) for the 4th quarter in the 2nd estimate (GDP Final). This contributed to the weakening of the yen for the 3rd day in a row.
Bitcoin has risen in price for the 2nd time in a row today. Investors are waiting this week for the publication of an executive order by US President Joe Biden, designed to support the crypto market and make it safer. The presidential administration has been working on this document since January. We note the decrease in the impact of the Ukrainian conflict on bitcoin. Crypto exchange Binance has stated that it will not conduct transactions with Mastercard and Visa credit cards of Russian participants. This did not have a noticeable impact on cryptocurrency quotes.
Stock Market news
| Indices | Change |
|---|---|
| Dow Jones Index | -0.56% |
| S&P 500 | -0.73% |
| Nasdaq 100 | -0.28% |
| US Dollar Index | -0.37% |
Yesterday, US stock indices fell for the second day in a row. Many corporations such as Procter & Gamble (-4%), Microsoft (-1.1%), Netflix, Walt Disney, Coca-Cola (-4%), PepsiCo (-2.8%), McDonald’s (-0 .7%), Yum Brands (KFC) and others, announced a voluntary restriction of their work in Russia against the backdrop of Western sanctions. This negatively affected their shares. In addition, the Russian government has imposed retaliatory sanctions against Western companies, including American ones. However, now futures for US stock indices are growing thanks to the statement by Ukrainian President Volodymyr Zelensky about his readiness to discuss Russia’s demands. Today in the US is not expected to publish significant economic statistics.
Commodity Market news
| Commodities | Change |
|---|---|
| WTI Crude | +0.6% |
| Brent Crude Oil | +0.93% |
| Natural Gas Prices | +0.97% |
| COPPER | -0.24% |
Today, oil is rising in price for the 4th day in a row. WTI quotes are approaching the historical maximum of $147 per barrel, which was in July 2008. Recall that almost immediately after this, the global economic crisis began (autumn 2008). U.S. President Joe Biden banned the import of Russian oil and gas into the United States. Its share in US imports is 8%, or about 1.63 million barrels per day. Now investors expect a reduction in oil production in Russia. This is the main factor in the growth of quotations. A negative factor for them was the announcement of the American Petroleum Institute on the increase in oil reserves in the US for the week by 2.81 million barrels.
Gold Market News
| Metals | Change |
|---|---|
| Gold | +0.43% |
| Silver/US Dollar | +0.42% |
Quotes of precious metals showed strong growth on Tuesday due to the continuation of the military conflict in Ukraine. An additional growth factor was the new mutual sanctions of Western countries and Russia, which could jeopardize global stability. The price of gold has updated its maximum since August 2020 and has confidently overcome the psychological level of $2,000 per ounce. Now this is the support level. Quotes of palladium have updated the historical maximum. Russia produces 40% of this metal in the world. Theoretically, it could cut palladium production due to Western sanctions.
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