In Asian Equity Markets stocks weakened on Friday while oil prices jumped as investors took fright from reports of a nuclear power plant on fire amid fierce fighting between Ukraine and Russian troops. MSCI’s broadest index of Asia-Pacific shares ex-Japan tumbled as much as 1.6 percent to 585.5, the lowest level since November 2020, taking the year-to-date losses to 7 percent. It regained some losses but was still down 1.4 percent. Japanese stocks lost 2.6 percent, South Korea fell 1.3 percent, China decreased 0.7 percent and Hong Kong lost 2.7 percent while commodities-heavy Australia was down 0.7 percent.
In Currency Markets the euro was set for its worst week versus the dollar in nine months, as the war in Ukraine and the prospect of sustained high commodity prices continued to drag on expectations of European economic growth. Adding to worries in early Asian trade was news Ukraine’s Zaporizhzhia nuclear power plant, the largest of its kind in Europe, was on fire early on Friday after an attack by Russian troops. That sent the euro down a further 0.48 percent to $1.1009 its lowest since May 2020. The dollar in turn fell 0.15 percent on the safe haven yen on Friday morning.
In US Equity Markets stocks ended lower on Thursday, with growth stocks including Tesla and Amazon denting the Nasdaq, as the Ukraine crisis kept investors on edge. The Dow fell 0.29 percent to end at 33,794.66 points, while the S&P 500 lost 0.53 percent to 4,363.49. The Nasdaq Composite fell 1.56 percent to 13,537.94. Kroger Co jumped almost 12 percent after the grocer forecast upbeat annual same-store sales and profit, encouraged by strong demand for its pick-up and delivery services and sustained home-cooking trends.
In Commodities Markets oil slid 2 percent on Thursday, after hitting prices not seen in a decade, as sellers jumped on hopes the United States and Iran will agree soon on a nuclear deal that could add barrels to a tight global market. Brent futures were down 2.2 percent, to $110.46 a barrel, while U.S. West Texas Intermediate (WTI) crude fell 2.6 percent, to $107.67. Spot gold was up 0.4 percent at $1,933.31 per ounce. Spot silver lost 0.5 percent to $25.12 per ounce, while platinum rose 0.6 percent to $1,077.76. Spot prices of palladium rose 4.1 percent to $2,779.09.
In European Equity Markets stocks fell on Thursday as concerns over the impact of mounting sanctions against Russia weighed on sentiment even as a relentless rally in commodity prices boosted mining stocks. The Europe-wide STOXX 600 index fell 2.0 percent, having given up modest gains soon after the open. Travel and retail stocks led a broad-based decline. Germany’s DAX hit over one-year lows. Spain’s IBEX sank 3.7 percent dragged by utility stocks. The London Stock Exchange Group gained 9.6 percent after it said applying financial sanctions on Russia would have only a minor impact on its business.
In Bond Markets the U.S. Treasury yield curve reached its flattest level since March 2020 on Thursday as Federal Reserve Chairman Jerome Powell reiterated that he supports a 25-basis-point hike this month, and before Friday’s highly anticipated February jobs report. Moves on Thursday were more tempered though two-year yields moved higher. The yields increased 2 basis points to 1.536 percent. Benchmark 10-year yields fell 2 basis points to 1.844 percent, after getting as high as 1.910 percent on Wednesday. They fell as low as 1.682 percent on Tuesday, the lowest since Jan. 5.