Amplified global economic risks

Today's news headlines: 

‘Russian forces occupy site of nuclear plant as fire contained’
. Europe’s largest nuclear power plant in Eastern Ukraine, the Zaporizhzhia plant, has been occupied by Russian forces following a fire outbreak caused by shelling. World leaders condemned the attack, with US President Joe Biden calling for an immediate ceasefire on the plant. The head of Ukraine’s nuclear operator claimed the reactors are designed to withstand an aircraft crash and have systems in place to shut down reactors once vibrations from the attack are sensed. (Bloomberg)

‘Ukraine war will ‘amplify’ inflation problems, Norway oil funds chief says’. The head of the world’s largest sovereign wealth fund in Norway has warned that the invasion of Ukraine has increased inflationary pressures through energy, food, and other commodities while depressing the economic growth outlook globally. Back in January, the Chief Executive of Norway’s $1.3tn oil fund warned that investors faced years of low returns as high inflation becomes entrenched. He added the situation in Ukraine is now ‘amplifying’ these risks to the global economy. (Financial Times)


Today

European and US equity futures followed Asian equities lower overnight after Ukraine said Russian shelling caused a fire at a nuclear power plant and ahead of US jobs data released this afternoon. European sovereign yields ticked lower this morning and Brent oil prices remained around $110 a barrel.

Events

French Industrial Production MoM (Jan): 1.6% (est. 0.5%)
Italian Gross Domestic Product QoQ (Q4): 9:00AM
US Non-Farm Payrolls (Feb): 1:30PM
US Unemployment Rate: 1:30PM

Interbank rates:

GBP/USD – 1.3308
GBP/EUR – 1.2085
EUR/USD – 1.1012
USD/CAD – 1.2700

The markets are moving. To speak to our team, please call +44 (0)20 3465 8200.