Risk markets remain extremely volatile as the Russian invasion of Ukraine is creating an absolute geopolitical mess across the globe, with tensions continuing to escalate while the financial sector reels. Stock futures have gapped down significantly from the Friday night bounceback for Wall Street, but that hasn’t been reflected in Asian trade suggesting some bifurcation of risk there. Brent crude is almost back to the $100USD per barrel while the Australian dollar gapped down from its Friday night high to return below the 72 cent level as a result. Bitcoin had a similar move although larger in relative terms, down to the $38K level again while gold actually gapped higher to jump back above the $1900USD per ounce level:
Mainland Chinese shares are wavering as downside volatility returns with the Shanghai Composite down 0.3% to 3442 points while the Hang Seng Index is off more than 1%, currently at 22452 points. Japanese stock markets are in retreat as well, with the Nikkei 225 down 0.2% to 26418 points as the USDJPY pair also gapped down but has recovered most of that move, currently again on the mid 115 level:
Australian stocks finished higher but only just as the surprise retail sales figure helped jump things along, with the ASX200 managing to clawback above the 7000 point level, up 0.4% to 7028 points. Meanwhile the Australian dollar gapped down significantly on the weekend open to remain solidly below the 72 handle and in a holding pattern as the London session gets underway:
Eurostoxx and Wall Street futures have dropped well before the open on the nuclear escalation from Russia as the economic and financial sanctions start to bite with the S&P500 four hourly chart showing price likely to open below the 4300 point level this evening:
The economic calendar starts the week with US trade goods figures plus some speeches from the ECB, but all eyes on Europe once again.