Asian stock markets started cautiously on Monday. Talk of even more sanctions against Russia over its invasion of Ukraine, While bond markets continued to risk hard access to the U.S. economy as short-term yields increased. Holidays in China have led to sluggish trade. MSCI’s extensive Asia-Pacific shares index outside Japan dropped 0.1 percent. The Nikkei 225 was unchanged. S&P 500 stock futures fell 0.2 percent; Nasdaq futures fell 0.3 percent.
Although Russian-Ukrainian peace talks have been delayed, Reports of Russia atrocities prompted Germany to say the West will agree to impose more sanctions in the coming days. According to the German Defense Minister, the European Union should consider banning the import of gas from Russia. This is a move that is likely to raise prices and force some energy rationing in Europe.
Data launched last week informed that inflation in the E.U. increased to record levels. This intensifies pressure on the European Central Bank to halt low prices, although growth will slow sharply.
Although the ECB will be wary of raising rates, it seems like it should have acted earlier to cancel the Q.E. program. The U.S. Federal Reserve increased. It seems to be doing more after a solid payroll report on Friday, March. Many Fed officials are required to speak at public events this week. More troublesome vote prospects and the last policy meeting minutes should be on Wednesday.
Russia invasion of Ukraine continues. Investors responded by pressing short-term treasury securities and further inversion of the yield curve. The market price is at risk. Consequently, all this tightening will eventually lead to a recession. On Monday, two-year earnings rose 2.49 percent to a three-year high; This is much higher than the 10-year 2.41 percent.
The yield jump supported the U.S. dollar, especially against the yen. The Bank of Japan repeatedly impacted bond yields last week to keep them close to zero. The dollar traded at the firm at 122.63 yen, Not too far from its last seven-year peak of 125.10. The euro moved to $1.1041. However, they may fall even further if the E.U. acts to stop the gas flow from Russia. The occupier calls the war in Ukraine a “special operation.”
Growth in bond yields slowed globally to gold. The metal was priced at $1,923 an ounce. Meanwhile, the price of oil dropped. After the United Arab Emirates and the Iran-related group welcomed the ceasefire, which would suspend military operations on the Saudi-Yemeni border. This will alleviate some of the concerns regarding potential delivery issues.
Oil fell 13 percent last week. It’s worth noting that this is the most significant weekly drop in the previous two years – since U.S. President Joe Biden announced the most significant reduction in U.S. oil supplies. Brent was down 86 cents at $103.53. U.S. crude oil lost 80 cents to a total of $98.47.
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Chinese EconomyCommodity PricesEconomic SlowdownGlobal EconomyInflationNasdaqOil Prices