Putin escalates war despite peace talks
What you need to take care of on Tuesday, March 1:
Risk sentiment remained the main driver of the market. Safe-haven assets rose at the weekly open amid the escalating war between Russia and Ukraine. Sentiment temporarily improved at the start of the US session amid peace talks. However, those talks ended without a decision. A new round of talks will take place in a few days, but hostilities have resumed with Moscow bombing civilian buildings near Kiev.
President Putin ignores sanctions and financial chaos: Russia imposes a halt to security payments from foreigners. Local stock markets will remain closed on Tuesday, while the RUB fell to record lows against the greenback.
Western nations are also stepping up preparations for war in the Baltic. Germany and Croatia, among other countries, have announced defensive preparations.
ECB President Christine Lagarde tweeted: “I have reiterated that the ECB will apply the sanctions decided by the EU, and we are ready to do whatever is necessary within our mandate to ensure stability. prices and financial stability”.
EUR/USD flirted with the yearly low before bouncing back, now trading around the 1.1200 level. GBP/USD posted a modest intraday advance and settled around 1.3400. Commodity currencies were among the best performers against the greenback, with AUD/USD trading around 0.7250 and USD/CAD in the 1.2690 price zone. The Swiss franc and the yen rose slightly against the dollar.
Spot gold is trading around $1,900 per troy ounce, while a barrel of WTI changes hands at around $935.30, both up from Friday’s close.
Increased demand for government bonds pulled yields lower. Meanwhile, most global indices were trading in the red.
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