Daily Market Commentary 7th March 2022

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Markets ended a tumultuous week lower, with Equities losing further ground, while Oil reached US$118/barrel. Markets have been spooked by the Ukrainian situation and breaking news influences market daily. This is likely to continue until the situation is resolved. The military take-over will likely be completed soon enough, with the collapse of the Ukrainian army, which may come earlier if a political solution is found. The tough sanctions imposed upon Russia not only impact Russia, but Europe will suffer terribly, as well. The EUR has collapsed to trade 1.0900, as reality dawns upon them, while the GBP has fallen to 1.3220.

Commodity prices have surged and this has supported the corresponding currencies, with the AUD rallying to 0.7350, while the NZD looks to regain 0.6850. The coming week will likely be dominated by the Ukraine crises, while markets will look at the inflationary impact of the energy and food crises unfolding. The ECB will meet this coming week and will look at the impact of the situation, while the European Council also will be meeting to discuss this existential crises.

Be prepared for another week of uncertainty and volatile market moves.

Collinson & Co Contact