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Midday Brief
Ukraine’s conflict with Russia continues to push energy prices higher thus delaying the expected peak in price trends. The US is moving closer to banning Russian crude oil and other Russian-produced goods, and the house could vote on the proposal as soon as Wednesday. Ukraine and Russian diplomatic negotiations continue to be unfruitful, and Russia threatens to stop the gas flow into Europe.
Crude Oil continued to surge, early Tuesday morning as a lot of companies continue to pull out from Russian operations. US WTI crude oil prices edged higher gaining 1.76% after the US considers a Russian import ban yesterday.
US OIL found near-term technical support at $115.68 after covering a price action gap during the Monday market open. Bulls now face a near-term resistance at 127.50 per Barrel.
Early European session, Gold broke above the $2000 near-term resistance as inflationary risk continue to push investors into risk aversion. The bulls have a near-term resistance at $2020.00 and a break above that area, a possibility of revisiting all-time highs at 2075.00 which coincides with the August 2020 high.
London Metal exchange halts Nickel trading early Tuesday morning as the price continues to surge caused by a short squeeze. Nickel is currently 50% up and several traders have been caught unawares on the short squeeze due to the price spike towards $100,000. A lot of margin calls on the market and this will affect global dynamics in the near term.
European stocks rallied early Tuesday morning after news that Europe is continuing Bond sales in a bind to finance energy and defense sectors. The market remains in turmoil after a warning from Russia to halt gas flows into Europe and Europe looks to fiscal action to stop risk exposure. FTSE 100 rose 1.07% although the price remains capped by 6975.50 near-term support turned resistance.
CAC40 rose +3.0% attempt to break above 6111.0 near-term resistance which coincides with yesterday’s high. DAX is up 1.57% as bulls reclaim 13000 after finding support at 12446.96.
Currency markets, NZDUSD pushes to the upside +0.11% as bulls find near-term support at 0.6812. The commodity-backed currency continues to strengthen against the USD as commodity prices continue an upward trajectory. The trend faces a near-term resistance at 0.6890 which coincides with a 3-months high.
USDJPY extended gains by 0.31%, as the dollar continues to strengthen against the Japanese yen in the near term. The pair remains in consolidation between 115.80 and 114.50 for 3 weeks, and the pair can trade higher as FED raises sentiments of 25bps this March. A break above near-term resistance at 115.80 can give room for bulls to target 116. 34, a January 2017 high.
US main index fell on Monday as the prospect of a Ban on oil imports from Russia sends crude oil prices higher. Russian oil makes up 3% of US crude imports and this could impact US inventories in the near term.
The Nasdaq 100 dropped -3.75% on Monday as bears face 13050.00 near-term support, DJIA is currently sitting at 32817.39 after dropping 2.37%. Investors will be watching API weekly Crude oil stocks and US trade balance statistics.
