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A week of war -Breaking

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© Reuters. One trader is seen working on the New York Stock Exchange’s floor in New York City (USA), February 28, 2022. REUTERS/Brendan McDermid

Dhara Ranasinghe shows us the market day ahead.

A fire broke out at the training facility near Europe’s largest nuclear power station during fierce fighting between Russian forces and Ukrainian troops. However, markets around the world were still on edge Friday.

Stock markets throughout Asia looked reddish, as MSCI’s index of stocks outside Japan fell to an 16-month low and was down 2.2%.

European stock futures are significantly lower, and Wall Street appears set to follow the selloff when it opens later. The fourth consecutive week of losses is expected for the MSCI global equity benchmark.

You should also keep an eye on the euro because of recent events in Ukraine.

It has lost nearly half a percent, and is now at its lowest point since May 2020. The currency was $1.1010. This week it has fallen by more than 2% and will be at its lowest level since April 2020.

A move to parity — an unpopular term for some time — against the dollar may be in the offing. Currency weakness is adding to the inflation headache. It may be worth watching how the European Central Bank reacts to currency weaknesses.

Noting that some economists think headline inflation within the euro zone could rise to 6% next year, The ECB has a target of 2%.

U.S. data on payrolls — which are usually the most important for markets — seems almost to have disappeared into the background, with markets gripped in the conflict in Ukraine.

Reuters polled economic experts and forecast that the U.S. will create 400,000 jobs this month after a 467,000 rise in January. According to Reuters, this would result in 2.5 million jobs being lost.

Even though all of the job losses are anticipated to be compensated this year and the War in Ukraine will likely slow down the pace of job growth, it could affect confidence in businesses.

Federal Reserve looks like it will start raising rates later in March. They’ll be closely monitoring the labor market.

NFP https://fingfx.thomsonreuters.com/gfx/mkt/byvrjejmbve/Pasted%20image%201645660089349.png

The following are key developments which should give more direction to the markets Friday

IAEA declares that the nuclear power plant in Ukraine is not affecting ‘essential parts’

Oil prices rise as oil supply is hit by the Ukraine conflict.

IKEA, Nike and IKEA shut down Russian shops due to trade sanctions.

German current account and trade

– Euro zone retail sales

U.S. nonfarm payrolls

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