Financial Analyst/Content Writer, RADEX MARKETS
Lawrence J. came from a strong technical and engineering background before pivoting into a more financial role later on in his career. Always interested in international finance, Lawrence is experienced in both traditional markets as well as the emerging crypto markets. He now serves as the financial writer for RADEX MARKETS.
ACTIONS
Oil prices made another leg up this morning, with no resolution in the Middle East in sight. Brent Crude futures hit $116 per barrel, while WTI, which still maintains a sizeable gap with seaborne contracts, pushed up to $102 earlier today. The US continued its military buildup in the region over the weekend, amassing thousands of troops in preparation for what is expected to be a mission to capture Kharg Island. On the other side of the Gulf, it appears as though Yemen has now also entered the conflict, potentially threatening shipping in and out of the Red Sea, further complicating matters. The situation remains volatile, as do oil prices, with both major benchmarks already undergoing wild swings this morning.
As expected, US stock futures have reacted poorly to ongoing developments, while Asian stock markets shot down as soon as trading got underway this morning. The Nikkei 225 fell by 5% within minutes of the opening bell, as did the Korean Kospi, before both indices recovered a little as the session progressed. US stocks ended on a dour note last week, with the Dow Jones losing 1.7% on Friday, plunging the index into correction territory. Both the Dow and the Nasdaq have lost over 10% from recent highs and the S&P 500 is close to joining the club. Markets from Europe to Asia are experiencing similar drawdowns, with Korean stocks being hit particularly hard. The US dollar made further inroads last week, pushing USDJPY over the dreaded 160 threshold on Friday. The move has prompted Japanese currency officials to warn speculators that authorities may step in to defend the yen if the situation persists. The comments helped move the pair back below 160 this morning. Meanwhile, the Korean Won is currently facing record lows against the dollar, with USDKRW now toying with 1,513.
Good Friday will mean a shortened trading week for much of the world, with financial markets closed across Europe, America, Australia, New Zealand and Hong Kong. Jerome Powell is scheduled to speak later today but given the current environment it is unlikely that the Federal Reserve Chairman will provide much in terms of insightful commentary. European inflation dominates Tuesday’s proceedings before the February JOLT survey steps in to provide the latest on US job openings. European unemployment, US retail sales and the ADP employment change are all events to look out for on Wednesday, as well as the ISM manufacturing PMI. Finally, although financial markets are closed on Friday, US government offices are not, meaning the March NFP report will be published according to the normal schedule. Economic calendar aside, developments surrounding Iran will continue to be the main drivers of financial movements this week.
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