Headlines:
- Putin: Russia has no ill intensions towards its neighbours
- Ukraine says will not announce date and time of new talks with Russia in advance
- Moscow Exchange reportedly will be closed on 5-8 March
- EUR/CHF eyes parity for the first time since the SNB pulled the rug in 2015
- EUR/USD tumbles below 1.1000 for the first time since May 2020
- The technical breakdown in the euro could get much worse
- The ominous message from the bond market draws ever closer
- AUD/USD looks to solidify an upside breakout
- Eurozone January retail sales +0.2% vs +1.3% m/m expected
- Germany January trade balance €9.4 billion vs €6.1 billion expected
Markets:
- NZD leads, EUR lags on the day
- European equities lower; S&P 500 futures down 1.0%
- US 10-year yields down 5.5 bps to 1.789%
- Gold up 0.6% to $1,946
- WTI up 2.6% to $110.48
- Bitcoin down 1.3% to $41,560
As Russia-Ukraine war clouds continue to hang over markets, risk trades are sinking back after Russia had earlier attacked a nuclear power plant in Ukraine. But as tensions defuse on that front, markets are still feeling jittery ahead of the weekend with much uncertainty still up in the air right now.
European equities are having an absolute stinker with the DAX headed for its worst week since March 2020, down another 3.6% today. Most indices are down over 3% with US futures also down by roughly 1% currently as well.
The flight to safety is seeing bonds stay more bid as 10-year German bund yields fall back to negative territory and 10-year Treasury yields down by over 5 bps to 1.789%.
In FX, the euro is experiencing a torrid time as it is down over 110 pips against the dollar in a fall below 1.1000. The single currency is crumbling across the board with EUR/CHF also starting to take aim at parity on the day.
The dollar is more bid as such but trading rather mixed, posting solid gains against the pound with cable down to 1.3260 and also against the loonie with USD/CAD up 0.6% to 1.2755.
But the aussie and kiwi continue to be the standout performers with the former hoping to secure an upside breakout, pushing to a high of 0.7374 before holding around 0.7340-50 now.
Elsewhere, gold is also up and trading back above $1,945 as safety bets stay the course while oil is rebounding a little after the drop yesterday to climb back above $110.
US non-farm payrolls is up next, so that will add to the intrigue before the weekend.