Good morning, and welcome to our rolling protection of the world economic system, the monetary markets, the eurozone and enterprise.
Every week after Russia’s invasion of Ukraine started, Russia has claimed to have captured the strategically vital southern metropolis of Kherson on the Black Sea, though it’s unclear whether or not Russian troops have absolutely captured town. The Ukrainian capital, Kyiv, has come below extra heavy shelling as Russian forces step up their offensive.
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Oil, coal, aluminium, wheat and different commodity costs proceed to surge as Russia’s invasion of Ukraine has triggered fears over provide. Brent crude, the worldwide benchmark, rose by way of $118 a barrel for the primary time since February 2013. It’s at the moment round $117 a barrel, up $4 on the day. US mild crude is buying and selling at $114.46 a barrel.
Aluminium has hit yet one more report excessive, rising 2.3% to $3,650 on the London metallic Change (it has gained 30% thus far this yr), whereas nickel climbed over 4% to $26,935 a tonne. Russia is a serious producer of each metals.
For grains, Russia and Ukraine collectively are estimated to have accounted for practically 29% of world wheat exports final yr, in line with the US Division of Agricultures, so the battle has jolted world wheat costs increased.
Chicago wheat futures have climbed to 14-year highs of $11.34 a bushel, and are up practically 40% this month.
The London Inventory Change has suspended buying and selling in 27 corporations with robust ties to Russia, together with aluminium producer EN+, Sberbank, Gazprom, Lukoil and gold miner Polyus. The LSE mentioned the transfer was prompted by “occasions in Ukraine, in mild of market circumstances, and with a view to keep orderly markets.”
The Russia-exposed miners Polymetal and Evraz have been ejected from the FTSE 100 after they suffered heavy share worth losses following western sanctions on Russia. They’re down 77% and 82% respectively thus far this yr and have been demoted to the FTSE 250 index.
Within the newest FTSE 100 reshuffle, gold producer Endeavour Mining and the kitchens maker Howden Joinery will substitute them from the beginning of buying and selling on Monday.
German authorities have reportedly seized the $600m superyacht belonging to Russian billionaire Alisher Usmanov in a Hamburg shipyard. He was on an inventory of billionaires to face sanctions from the European Union in response to Russia’s 24 February invasion of Ukraine.
Over right here, a former Russian deputy prime minister owns an £11.44m luxurious flat in London’s Whitehall, and final night time Igor Shuvalov was accused of being one in all Putin’s “cronies” who had “dipped their fingers in blood”.
The Agenda
- 9am GMT: Eurozone Markit Providers and Composite PMI closing for February
- 9.3am GMT: UK Markit Providers and Composite PMI closing for February
- 12.30pm GMT: Eurozone ECB financial coverage assembly accounts
- 1.30pm GMT: US Jobless claims for week of 19 February
- 2.45pm GMT: US Markit PMIs closing for February
- 3pm GMT: US Federal Reserve chair Jerome Powell testimony
- 3pm GMT: US ISM Non-manufacturing PMI for February
