Chaos on risk markets as Russia invades Ukraine, sending energy prices up 4-5% across the board, while the run to safe havens see USD and Yen bid higher while stocks are sold off heavily as S&P and DAX futures indicate a 2-4% drop on the open. Brent crude is now above $100USD per barrel while WTI is almost there as well as the Australian dollar is oscillating with weakness underneath the 72 cent level as a result. Bitcoin fell completely out of bed, falling nearly 10% to the $33K level while gold has accelerated higher, now up to the $1940USD per ounce level as momentum extends into a very overbought position:
Mainland Chinese shares are down solidly with the Shanghai Composite off more than 1.5% to 3435 points while the Hang Seng Index is down more than 3% as fear grips, currently at 22917 points. Japanese stock markets comeback from holidays at the wrong time with the Nikkei 225 down nearly 2% to 25934 points while Yen safe haven buying has seen a collapse in the USDJPY pair, straight down to a new weekly low:
Australian stocks suffered a similar fate, with the ASX200 closing 3% lower to finish at 6990 points while the Australian dollar has fallen straight through the 72 handle, as it falls straight through former resistance and breaks the uptrend that got out of hand in the previous session:
Eurostoxx and Wall Street futures are down between 2-4% and not looking pretty as the S&P500 four hourly chart shows price falling sharply to the April 2021 low (its still up nearly 8% for the last twelve months) after crumbling below the key psychological 4400 point level:
The economic calendar continues with the latest US GDP growth estimate, although I’m thinking no-one will be watching that tonight with all eyes on Europe.
The silver lining in all this is that Clive Palmer was rushed to hospital today (needed the reinforced suspension ambulance too) suffering from COVID symptoms. Herman Cain Award soon?