Equities mixed while oil dips on Russia-Ukraine talks hopes - 14.3.2022

The Dollar strengthening continues currently. The live dollar index data show the ICE US Dollar index, a measure of the dollar’s strength against a basket of six rival currencies, rose 0.1% on Friday despite University of Michigan preliminary report showing consumers sentiment deteriorated to new post-COVID lows in March.

Both EUR/USD and GBP/USD continued their retreating Friday despite the Office for National Statistics report UK industrial production expansion accelerated in January. Pound is lower against the Dollar currently while euro is higher. AUD/USD reversed its climbing Friday while USD/JPY accelerated its climbing with both the yen and Australian dollar lower against the Greenback currently.

Futures on US equity benchmarks are up currently with 10-year US treasury yields up at 2.046%. US stocks broadened their retreat on Friday while the University of Michigan’s survey of consumers showed US consumer inflation expectations one year forward rose to 5.4%, the highest in forty years for the survey. The three main US stock benchmarks recorded daily losses ranging from 0.7% to 2.2% led by tech stocks.

European stock indexes are higher currently after ending higher on Friday led by travel and leisure shares. President Vladimir Putin said Friday “certain positive shifts” had occurred in the talks between the Kremlin and Ukraine. Asian indexes are mixed today with Hong Kong’s Hang Seng index leading losses while mainland Chinese blue chips index edged up.

Brent is retreating today on Russia-Ukraine talks progress hopes. Traders are waiting for resumption of Iran nuclear deal talks after Russia insistence on "blanket guarantee" that the Western sanctions imposed on its economy following its invasion of Ukraine would not affect its trade with Iran prevented the completion of talks last week. The US responded by pointing that the sanctions imposed on Russia over its Ukraine invasion have nothing to do with a potential nuclear deal with Iran. Prices fell on Friday. West Texas Intermediate (WTI) futures rose 3.1% but is lower currently. Brent crude gained 3.1% to $112.67 a barrel on Friday.