- Pressure remains on global stock markets
- Conflict intensifies in eastern Ukraine
- Iran nuclear deal is taking shape according to Reuters
European indices erased early gains and finished today’s session lower, with DAX down more than 1% as ongoing concerns regarding potential military conflict between Russia-Ukraine weighed on market sentiment. News that Russian Separatist in Donetsk in East Ukraine plan to evacuate around 700K people to Russia lowered the odds the conflict could be resolved diplomatically. Also, Russian media said a car exploded near a government building in Donetsk. On the other hand, the US Secretary of State agreed to a meeting with Russia's foreign minister next week, so maybe at least until then military actions will not take place. Also president Biden will hold a call with transatlantic leaders later and to speak later today after session close.
Rising geopolitical tensions and hawkish rhetoric from Fed members also put pressure on Wall Street indices. St. Louis Fed President James Bullard repeated his call for Fed's strong action and Fed Bank of Cleveland President Loretta Mester said she supports hiking rates faster if needed. Fed's Williams expects it will be appropriate to raise rates in March.
Start investing today or test a free demo
Create account Try a demo Download mobile app Download mobile appMixed moods prevail today in commodity markets amid stronger dollar and lower treasury yields. US 10-year Treasury dropped to 1.92%, while gold pulled back slightly below $1900 level. Meanwhile silver rose 1.0% and is approaching major resistance at $24.00. WTI price swings between gains and losses around $90.00 level. Reuters reported that a deal to revive the 2015 Iran nuclear deal is taking shape, with a draft accord outlining a sequence of steps that would eventually lead to granting waivers on oil sanctions, and bring about 1 million barrels a day of oil back to the market. Nevertheless, oil traders remain at the mercy of a volatile and tense standoff in Ukraine. Major cryptocurrencies took a hit today. Bitcoin fell more than 2.5% and briefly broke below $40 000 while Ethereum is testing $2800 level.
GBPUSD pair failed to break above the long-term downward trendline and pulled back to the local support at 1.3600 which coincides with 23.6% Fibonacci retracement of the upward wave launched in March 2020. Should break lower occur, downward move may accelerate towards next support at 1.35 which is marked with previous price reactions and EMA 100 (purple line). Source: xStation5
The content of this report has been created by XTB S.A., with its registered office in Warsaw, at Prosta 67, 00-838 Warsaw, Poland, (KRS number 0000217580) and supervised by Polish Supervision Authority ( No. DDM-M-4021-57-1/2005). This material is a marketing communication within the meaning of Art. 24 (3) of Directive 2014/65/EU of the European Parliament and of the Council of 15 May 2014 on markets in financial instruments and amending Directive 2002/92/EC and Directive 2011/61/EU (MiFID II). Marketing communication is not an investment recommendation or information recommending or suggesting an investment strategy within the meaning of Regulation (EU) No 596/2014 of the European Parliament and of the Council of 16 April 2014 on market abuse (market abuse regulation) and repealing Directive 2003/6/EC of the European Parliament and of the Council and Commission Directives 2003/124/EC, 2003/125/EC and 2004/72/EC and Commission Delegated Regulation (EU) 2016/958 of 9 March 2016 supplementing Regulation (EU) No 596/2014 of the European Parliament and of the Council with regard to regulatory technical standards for the technical arrangements for objective presentation of investment recommendations or other information recommending or suggesting an investment strategy and for disclosure of particular interests or indications of conflicts of interest or any other advice, including in the area of investment advisory, within the meaning of the Trading in Financial Instruments Act of 29 July 2005 (i.e. Journal of Laws 2019, item 875, as amended). The marketing communication is prepared with the highest diligence, objectivity, presents the facts known to the author on the date of preparation and is devoid of any evaluation elements. The marketing communication is prepared without considering the client’s needs, his individual financial situation and does not present any investment strategy in any way. The marketing communication does not constitute an offer of sale, offering, subscription, invitation to purchase, advertisement or promotion of any financial instruments. XTB S.A. is not liable for any client’s actions or omissions, in particular for the acquisition or disposal of financial instruments, undertaken on the basis of the information contained in this marketing communication. In the event that the marketing communication contains any information about any results regarding the financial instruments indicated therein, these do not constitute any guarantee or forecast regarding the future results.
