LONDON (Parliament Politics Magazine) – With news that US President Biden and Russian President Vladimir Putin have agreed to meet to resolve the Ukrainian problem, the week has started on a more positive note.
Emmanuel Macron, the French president, has invited Putin and Biden to a conference aimed at de-escalating the Ukraine issue, and the two leaders have accepted in principle, according to Macron’s office, despite new US fears that war is likely.
The Russian rouble hit a one-week low versus the dollar, but has since rebounded to trade up 1%. After touching 77.69 in early trade, it is now at 76.5.
While tensions on the Ukraine-Russia border heightened over the weekend, European stock markets are set to open modestly higher. Markets in the United States are closed for President’s Day.
The global benchmark for Russia’s principal export (oil), Brent crude, is trading at $93.45 a barrel, down a fraction. After hitting an eight-month high of $1,891.33 an ounce, gold has dropped 0.5 percent to $1,888.54 an ounce.
Markets are still jittery, as Asian stocks are mainly lower today, with Japan’s Nikkei down 0.78 percent and Hong Kong’s Hang Seng down 0.83 percent.
The FTSE 100 index in the United Kingdom suffered its worst week since late November, when the discovery of the Omicron sent markets into a tailspin. The blue-chip index has dropped 1.9% after a big ruckus the previous Monday.
The government’s record 107.6 trillion yen (£690,000) spending plan for the upcoming fiscal year has been approved by a key parliamentary committee in Japan, opening the way for the budget’s complete passage through the legislature next month.
On the economic front, the highlight is Markit’s February flash estimates for widely monitored business surveys, which were released this morning for the eurozone and the United Kingdom.
Nickel prices have risen to their highest level in almost a decade on the market, owing to low stock levels, increased demand from electric car manufacturers, and the Ukraine conflict.
On the London Metal Exchange, three-month nickel hit a new high of $24,545 per tonne, the most since August 2011.
ANZ, Australia’s second-largest bank, said in a statement:
Strong demand for battery materials, especially nickel, is being boosted by strong sales of electric vehicles.
They went on to say that tensions between Ukraine and Russia, as well as the accompanying supply risk, were adding to the volatility.
The FTSE 100 steelmaker Evraz, which is based in London but has extensive operations in Russia, is the index’s highest performer, up 5.4 percent. Roman Abramovich, the Russian owner of Chelsea football club, owns 29 percent of the corporation.
IAG (International Consolidated Airlines Group), which owns British Airways, is the second-largest gainer, up more than 4%, as the UK’s last domestic Covid-19 restrictions are lifted.
AstraZeneca’s stock is up 1.5 percent after the Anglo-Swedish pharmaceutical company announced favourable results for its Enhertu cancer medication.
Since June, France’s business activity has been at an all-time high.
The first of the flash PMIs has been released, this time for France. It shows that business activity was at its highest level since June.
- Flash France Composite Output Index hit an 8-month high of 57.4 in February (52.7 in January).
- The Flash France Services Activity Index hit a 49-month high of 57.9 in February (53.1 in January).
- The Flash France Manufacturing Output Index hit a seven-month high of 55.0 in February (50.9 in January).
- Flash France Manufacturing PMI hit a seven-month high of 57.6 in February (55.5 in January).
Germany’s economy is expanding at its quickest rate in six months
According to the latest business sector snapshot from IHS Markit, the German economy has risen at its quickest rate in six months, despite a new wave of Covid-19 infections due to the emergence of the Omicron strain.
At 56.2, the Flash Germany PMI Composite Output Index is the highest in the world (Jan: 53.8). a six-month high
- Germany’s Services PMI Activity Index has risen to 56.6. (Jan: 52.2). a six-month high
- Germany’s Manufacturing Output Index has risen to 55.4. (Jan: 57.0). a two-month low
- Germany’s Manufacturing PMI has risen to 58.5. (Jan: 59.8). a two-month low
