Global stock markets have fallen sharply on Thursday as the Russian defence ministry has confirmed missile strikes against Ukrainian military and aviation targets, with reports of explosions in several cities and troops entering Ukrainian territory.
“France strongly condemns the decision of Russia to start a war with Ukraine. Russia must immediately put an end to its military operations." - French President Emmanuel Macron said.
“The prayers of the entire world are with the people of Ukraine tonight as they suffer an unprovoked and unjustified attack by Russian military forces,” US president, Joe Biden said.
“President Putin has chosen a path of bloodshed and destruction by launching this unprovoked attack on Ukraine. The UK and our allies will respond decisively.” – UK Prime Minister Boris Johnson said.
US futures slightly recovered from the early session lows. During the Asian session, the US futures and Asian shares plunged the fresh monthly lows following the NATO confirmed an official invasion of Ukraine and reports indicated that Russian forces are attacking the Ukrainian border around Belarus. Meanwhile, trading on the Moscow Exchange has been suspended for a few hours because the Ruble and the Russian stock market fell to limits set by the Exchange.
Crude oil futures extend the rally on Thursday. Brent crude futures hit $100 per barrel for the first time since September 2014 after Russian President Vladimir Putin announced a special military operation on the territory of Donbas. Meanwhile, the API data showed the US crude inventories rose by 5.983 million barrels in the week ended February 18th 2022.
In the currency market, FX markets remain volatile and safe-haven currencies are in demand over escalating frictions between Russia and Ukraine. On the other hand, the Russian Ruble fell to a record level after the announcement of military operations in Ukraine.
The Safe-haven metal reached a fresh 13 month high of $1952 on Thursday driven by the massive sell-off across the global equity markets. At the time of writing, the metal trades were above $1950.
On the data front, Eurozone consumer prices in January were 5.1 percent higher than in the same month last year. In December, the inflation rate was still 5.0 percent. Compared to the previous month, consumer prices rose by 0.3 percent.
Moving ahead today, the important events to watch:
US – GDP: GMT – 13.30
US – Jobless claims: GMT – 13.30
US – New home sales: GMT – 15.00
Worldwide, more than 420 million people have been confirmed infected and more than 5.9 million have died. The United States has confirmed over 77 million cases and has had more than 910,000 deaths from COVID-19, the highest totals in the world.
Technical Outlook and Review
DOLLAR INDEX: The index slightly retreats from the daily highs. Moving ahead to the North American session, the USD traders should closely monitor the release of U.S. GDP data.
The important levels to watch for today: Support- 96.45 and 96.20 Resistance- 96.90 and 97.20.
GOLD: The precious metal trades above $1940. Overall, the momentum remained bullish throughout the European session. The important levels to watch today are $1930 and $1965.
The important levels to watch for today: Support- 1930 and 1910 Resistance- 1950 and 1965.
Quote of the day - “Make a mistake, analyze the mistake, understand the mistake, then get over it and focus on the next trade in the ongoing series of trades.” Peter Brandt.