LIVE MARKETS Worst week since the COVID-19 crash?
LIVE MARKETS Worst week since the COVID-19 crash?

LIVE MARKETS Worst week since the COVID-19 crash?

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Well, we are not there yet for STOXX 600. But we are close.

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The pan-European index falls around 1.2% to 431 points – a level not tested since May 2021 – and is set at a weekly loss of 4.7%.

The weekly loss would have to stretch to over 5.5% to bring us back to the chaos of the COVID-19 crash in March 2020, but for some sectors we are actually already there.

Cars and spare parts are losing 2.6% this morning and are on their way to a dive of as much as 15% this week.

The same applies to banks in the euro area, which start the day with a fall of 1.9% and adjust to a weekly loss of 13.3%.

Retail, which received less media attention than lenders, is also in its worst week since the start of the pandemic with a drop of over 10%.

Among the other sectors that will rejoice over ‘TGIF’ is Travel & Leisure, with a decline of 10% + over the last five days.


(Julien Ponthus)



A fire in a training building near the largest nuclear power plant in Europe during intense fighting between Russian and Ukrainian forces has been extinguished, but markets globally were left on edge last Friday. Read more

Equity markets across Asia were a sea of ​​red, with MSCI’s target for equities outside Japan hitting a 16-month low (.MIAPJ0000PUS) and Japanese Nikkei fell 2.2 percent. (.N225).

European stock futures are significantly lower and Wall Street, when it opens later, looks set to join the sale. MSCI’s global equity benchmark is heading for a fourth consecutive week of losses (.MIWD00000PUS).

See also the euro, which has received another blow from recent developments in Ukraine.

The single currency has fallen nearly half a percent and hit its lowest since May 2020 at $ 1.1010. It has lost over 2% this week and is set for the worst week since April 2020.

For some, a shift to parity – a word that has not been used for some time – versus the dollar, may be at stake. As currency weakness adds to the inflation headache, it may be time to see how the European Central Bank responds to currency weakness Read more .

Note that some economists expect total inflation in the euro area to peak at 6% this year. The ECB’s target is 2%.

US wage data – usually the highest focus for markets – almost seems to have fallen into the background of markets gripped by the war in Ukraine.

Economists polled by Reuters predict that the U.S. economy created 400,000 jobs last month after rising 467,000 in January. That would leave employment 2.5 million jobs below that pre-pandemic level. Read more

All the lost jobs are expected to be earned back this year, but the war in Ukraine could hurt business confidence and slow job growth in the coming months.

The Federal Reserve, which looks set to start rising later in March, will follow the labor market closely.


Key developments that should give more direction to the markets on Friday:

– The IAEA says that ‘significant’ parts of Ukraine’s nuclear power plant are not affected Read more

– Oil is rising as the escalating conflict in Ukraine hits supplies Read more

-Nike, IKEA closes Russian stores as sanctions, trade restrictions bite Read more

German trade / current account

– Retail sales in the euro area

US non-agricultural payrolls

(Dhara Ranasinghe)



An important step to keep an eye on in the coming session will be whether the euro holds the $ 1.10 line as the Ukraine crisis continues to worsen.

The single currency is currently losing 0.5% to $ 1.1010 and is set for its worst week against the dollar in nearly two years.

Yields on Germany’s bottom have also just fallen back into negative territory as investors look for safe havens to park cash.


(Julien Ponthus)


ON MAY 2021 LOWS (0659 GMT)

If one is to rely on futures about the sentiment across the markets this morning, it is more than likely that European equities will open around the lowest levels in March 2021.

A 2% drop in the STOXX 600 would actually bring the pan-European index down to levels not seen in about a year.

The derivatives are trading around 2%, and truth be told, there is little to be optimistic about before cash trading starts in an hour.

A fire and intense fighting around the largest nuclear power plant in Europe is not the kind of news traders are used to waking up to as Russia’s invasion of Ukraine continues to rattle investors’ nerves.

(Julien Ponthus)


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