AM Analysis
Weekend of increased tensions between Russia and Ukraine
Amid a weekend of increased tensions between Russia and Ukraine, global markets have reacted dramatically with Spreadex calling the FTSE 100 down around down around 76 points. With the Ukraine geopolitical situation continuing to get worse, investors have sought a safe haven in precious metal Gold. The yellow metal has seen a $20 spike increase alongside Brent Crude which has surged to around $110.80 a barrel for settlement in April, up nearly two dollars.
FX pairs have tumbled due to disappointing data in Asia and the Ukraine situation with AUD/USD dropping to around 0.89 soon after the open; however investors seem to have bought into the dip bringing the pair slightly back in line. HSBC Final Manufacturing PMI came in at 48.5 overnight which shows output and new orders have fallen in China.
Looking towards the day ahead, GBP Manufacturing PMI is set to be released this morning, ECB President Draghi is to speak and USD ISM Manufacturing will be released in the afternoon. With a week of high importance economic data and the geopolitical situation in Ukraine showing no signs of rest, we look set for a very volatile week of trading.
– Sam Fox
PM Analysis
Russia’s interventions in Ukraine have dragged global markets lower
Escalating tensions between Russia’s interventions in Ukraine have dragged global markets lower as investors dump riskier assets in search for safe havens. Vladimir Putin’s military continues to strengthen its presence in Crimea, delivering a deadline to Ukrainian forces in Crimea to surrender or face military action.
Gold extended its rally into the afternoon with April futures trading $33 higher whilst Brent Crude advanced over $2 a barrel. Brent crude has surged to a two-month high amid escalating tension could hurt supplies.
With tensions in Ukraine taking the limelight, figures from the US showed that manufacturing expanded at a faster pace than projected in February. The US manufacturing index rose to 53.2 last month from 51.3 in January, a sign the industry was beginning to overcome the bad stint of weather they have received recently.
– Lee Mumford
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