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3 Mar 2014
Russia fears dominate the markets
FXStreet (London) - While the overnight session avoided a full-on risk-off session, the session so far today has been dominated by risk aversion as tensions in Russia and the Ukraine continue.
Over the weekend, Russia seized the Crimean peninsular following uprisings in the Ukraine and the toppling of Russia-backed Viktor Yanukovych as Ukrainian president.
Equities shunned on risk aversion
The Moscow stock exchange has seen its biggest drop in five years, falling more than 11 percent. At the same time, the ruble tumbled despite estimates that the Russian central bank has spent USD10bn trying to defend its currency.
US stock futures are under pressure as nervousness infects global markets. S&P futures are down 15 points to 1,842.50 while Dow futures are down 121 points to 16,186.00. In the UK, the Ftse has lost 1.66 percent to 6,696.33.
Yen benefits from haven demand
USD/JPY is down 0.36 percent to JPY101.4300, and EUR/JPY 0.59 percent to JPY139.6600. EUR/USD is down 0.23 percent to USD1.3770.
Commodity markets rally on supply concerns
Commodity markets have rallied strongly on supply concerns. More than half of Russia’s gas exports are pipelined through the Ukraine, with two thirds of European supply being channel through the country. The Ukraine is also the world’s third-largest corn exporter and the sixth largest exporter of wheat.
Natural gas contracts for April delivery are up 1.69 percent to USD4.69. European crude contracts are up 2.46 percent with Brent for April delivery trading at USD111.75. US WTI contracts are up 1,74 percent to USD104.38.
Haven demand has helped gold continue to rally, now up 12 percent on the year. Spot gold is currently trading at USD1,347.32/oz, up 1.58 percent on the session. Spot silver is up 1.16 percent to 21.47. Platinum is up 0.54 percent to USD1,454.13/oz.
Industrial metals are the only broad declines in the commodities markets, remaining under pressure on Chinese demand concerns and short-term dollar strength. Three-month copper is down 0.21 percent to USD/7,010/ton and three-month aluminium down 0.79 percent to USD154/ton.
Over the weekend, Russia seized the Crimean peninsular following uprisings in the Ukraine and the toppling of Russia-backed Viktor Yanukovych as Ukrainian president.
Equities shunned on risk aversion
The Moscow stock exchange has seen its biggest drop in five years, falling more than 11 percent. At the same time, the ruble tumbled despite estimates that the Russian central bank has spent USD10bn trying to defend its currency.
US stock futures are under pressure as nervousness infects global markets. S&P futures are down 15 points to 1,842.50 while Dow futures are down 121 points to 16,186.00. In the UK, the Ftse has lost 1.66 percent to 6,696.33.
Yen benefits from haven demand
USD/JPY is down 0.36 percent to JPY101.4300, and EUR/JPY 0.59 percent to JPY139.6600. EUR/USD is down 0.23 percent to USD1.3770.
Commodity markets rally on supply concerns
Commodity markets have rallied strongly on supply concerns. More than half of Russia’s gas exports are pipelined through the Ukraine, with two thirds of European supply being channel through the country. The Ukraine is also the world’s third-largest corn exporter and the sixth largest exporter of wheat.
Natural gas contracts for April delivery are up 1.69 percent to USD4.69. European crude contracts are up 2.46 percent with Brent for April delivery trading at USD111.75. US WTI contracts are up 1,74 percent to USD104.38.
Haven demand has helped gold continue to rally, now up 12 percent on the year. Spot gold is currently trading at USD1,347.32/oz, up 1.58 percent on the session. Spot silver is up 1.16 percent to 21.47. Platinum is up 0.54 percent to USD1,454.13/oz.
Industrial metals are the only broad declines in the commodities markets, remaining under pressure on Chinese demand concerns and short-term dollar strength. Three-month copper is down 0.21 percent to USD/7,010/ton and three-month aluminium down 0.79 percent to USD154/ton.