Morning wrap (22.02.2022)

8:01 AM 22 February 2022
  • Putin recognized the independence of Donetsk and Luhansk republics. 

  • Russian RTS plunged 13.21% yesterday amid looming risk of sanctions

  • United States said that it will announce fresh sanctions on Russia together with allies

  • According to media reports, Russian army has already moved into separatists' republics

  • Russia plans to set up military bases in new republics and will acknowledge separatists' claims to more land 

  • Ukraine says that regardless of what Russia says, it's borders are unchanged

  • S&P 500 dropped 0.72%, Dow Jones moved 0.68% lower and Nasdaq declined 1.23%. 

  • Asia indices also moved lower. Nikkei dropped 1.71%, S&P/ASX 200 moved 1.0% lower and Kospi dropped 1.35%. Indices from China traded 1-3% lower

  • DAX futures point to a lower opening of the European trading session

  • Goldman Sachs sees a possibility of a 6% drop in US stocks in case of a outright conflict in Ukraine

  • According to Japanese media, Japan will join United States in chip sanctions against Russia

  • Oil is adding to yesterday's gains and trades higher on the day. Brent approaches $95 area

  • Precious metals trade higher. Gold trades above $1,900 while silver breaches $24 per ounce

  • Cryptocurrencies are taking a hit amid increase in risk aversion. Bitcoin drops 2% and trades below $37,000

  • NZD and AUD are the best performing major currencies while GBP and CHF lag the most

The Russian RTS index (RUS50) plunged 13% yesterday and reached the lowest level since November 2020. Index may experience even more weakness soon when the West announces sanctions against Russia for recognizing separatist republics. Source: xStation5

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