Sanctions drive commodities higher
Today's news headlines:
‘US and UK ban Russian oil and gas imports in drive to punish Putin’. In the latest round of sanctions and isolationist measures, US President Joe Biden announced a ban on Russian oil to pressure Vladimir Putin into withdrawing troops from Ukraine. The European Union did not follow suit but committed to scaling back its purchases this year as the bloc’s dependence on Russian oil supplies threatens to exacerbate the cost of living crisis. The UK, which imports just 8% of oil supplies from Russia, went ahead with an outright ban. (Financial Times)
‘Rishi Sunak feels the heat as economic effect of Ukraine war hits UK’. As the Russia-Ukraine conflict continues, the economic effects are beginning to be felt in the UK. Chancellor Rishi Sunak will face pressure at the upcoming March 23rd economic statement with calls growing for an abandonment of the proposed national insurance increases totalling £12bn. Calls for a fuel duty freeze are also growing among some backbench MPs as Brent Crude heads toward $130 per barrel. (Financial Times)
Asian markets moved lower overnight as the S&P 500 closed at its lowest level since June 2021. Commodity prices continue to climb; Nickel topped $100,000 per tonne as Russia-related sanctions triggered a short squeeze. European markets have opened in positive territory this morning, ahead of a quiet day of data.
China Consumer Price Index y/y: 0.9% (est. 0.9%)
China Producer Price Index y/y: 8.8% (est. 8.5%)
Italian Industrial Production m/m: 9:00AM
US JOLTS Job Openings: 3:00PM
US Crude Oil Inventories: 3:30PM
US 10-year Bond Auction: 6:00PM
GBP/USD – 1.3125
GBP/EUR – 1.2010
EUR/USD – 1.0927
USD/CAD – 1.2852
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