Several largest American companies will publish their financial results this week. BTCUSD and XAUUSD are skyrocketing. What's going on in the markets?
Economic Consequences: Wednesday’s News
The impact of sanctions against Russia and Ukrainian conflict has become more visible, especially if we talk about natural commodities.
Stocks continued to sell off on Wednesday as the war in Ukraine and sanctions against Russia caused a record surge in commodities, clouding the economic outlook and boosting demand for sovereign bonds.
Russia's invasion of Ukraine threatens the flow of crops, energy and metals. The two countries account for more than a quarter of the world's grain trade, and Russia is rich in oil and gas as well. Wheat hit a 14-year high, XBR was near $110 a barrel, and the commodity index jumped to a record high since 2009. Now the resistance is at $111.50, and support is at $108.30.
Safe-haven demand supported the global fixed-income rally, with 10-year US Treasuries yielding about 1.72% and the Australian equivalent down 11 basis points. XAU fell in price, but remained near the 13-month high. USD was firm.
EU ambassadors agreed to exclude seven Russian banks from the SWIFT financial messaging system. Still, they spared the country's largest lender Sberbank PJSC and a bank partly owned by Russian gas giant Gazprom PJSC.
What to watch next?
CAD overnight rate, 05:00 PM MT
USD Fed chair Powell Testifies, 05:00 PM MT
OPEC-JMMC Meetings, all day
The dollar's status as the world's reserve currency could only be recovered if the US controls its spending. The huge budget deficit and rising interest rates on the US national debt should scare every American, analysts say. Read the full report to learn more!
Chinese investors are selling the UST. Meanwhile, the earning season continues. What's going on in the markets?
The Japanese yen fell to its lowest level against the US dollar in 33 years. Read the full report to learn the next target for USDJPY!
The US stock market fell in the third quarter. What's going on and why economists think that the last quarter will be better? Let's discuss it all here.
BlackRock CEO forecasts the Fed may have to raise rates further. The US dollar index (DXY) gains 130 points today. Read the full report to get more fresh news and technical analysis!