Stock Groups

Six charts to know in financial markets -Breaking

[ad_1]

© Reuters. FILEPHOTO: A board with the U.S. dollars and euros is seen by women as they walk along a street in Saint Petersburg on February 25, 2022. REUTERS/Anton Vaganov/File photo

LONDON, (Reuters) – Russia’s escalating conflict in Ukraine has driven commodity and oil prices soaring. This has boosted safe-havens as well as Europe’s stock and currency markets.

Here are six charts that show the dramatic changes in market prices:

EURO IN THE DOLDRUMS

On Friday, the euro was below $1.10 for the first-time in nearly two years. The dollar had lost more than 33% during this week’s biggest weekly decline since March 2020.

Even more losses were suffered by the single currency against the Swiss Franc. This is the largest weekly decline of almost 4 percent since January 2015, when the euro was abolished by Switzerland.

Fears that Russia may invade Ukraine and cause a new economic crisis, particularly as oil prices rise, are reasons why the euro is the worst performing currency this week. Graphic: The euro takes a beating, https://fingfx.thomsonreuters.com/gfx/mkt/akvezxnlepr/euroforkarin.PNG

GRAINS & METALS

The Western sanctions that have prevented Russia from importing and exporting commodities by air or sea have caused the raw material prices to soar to new multi-year heights.

Russia and Ukraine, two of the largest global wheat exporters, reached an unprecedented 14-year high on Friday. The gains of nearly 40% in just four years since Russia invaded Ukraine February 24, 2004.

Russia is also an important supplier of metals. The country, which supplies 3.5% to the world, saw its aluminium reach a new record on Friday.

Graphic: Grains and metals, https://fingfx.thomsonreuters.com/gfx/mkt/lgpdwaakxvo/Wheat%20and%20commodity%20prices.PNG ENERGY & GAS

Prices rose 21% in the last week and closed at their highest level since 2013. Buyers and shippers are increasingly shunning Russian oil supplies, which can reach up to 5 million barrels per hour (bpd)

It was impossible to dent the potential of Iran’s crude reaching a million barrels per hour in case there is a renewed nuclear deal. Nor did the agreement of the 60 million-barrel-releasing countries.

European gas prices saw a remarkable 120% increase in weekly volume, reaching 208 euro per megawatt hour, a new record. Graphic: Brent crude and European gas prices, https://fingfx.thomsonreuters.com/gfx/mkt/lbpgnzzgjvq/Brent%20crude%20and%20European%20gas%20prices.PNG

EUROPEAN BANKS PENALISM

European banks were again hit hard by Western sanctions against Russia, reduced rate rise expectations, and worsening macroeconomic conditions.

All the gains this year, which appeared to be a sign of economic recovery and central banks raising interest rates for banks’ benefit, have been reversed.

An index of European banks stocks fell 16% in the week ended March 2020. Its worst week since March 2020 brought its year-to date losses to 20%. Over the past week, shares in Russia-exposed banks such as Austria’s Raiffeisen or France’s SocGen dropped around one third. Graphic: European banking stocks down over 16% this week, https://fingfx.thomsonreuters.com/gfx/mkt/gdvzybngwpw/banks%20for%20karin.PNG

LOVE BUNDS

Investors were eager to buy safe-haven bonds because of the turmoil in European markets and increased uncertainty about the economy.

Germany, the benchmark euro-area bond issuer, saw its 10-year yields fall 30bps in this week’s largest one-week drop since 2011.

German Bund Yields are now back at negative yield territory, with a yield of -0.08%. Investors are prepared to pay Germany for its government’s ability to keep the bonds safe in uncertain times. This was different from a week earlier, when Bund yields were at 0.2%. Graphic: Bund yields below zero, https://fingfx.thomsonreuters.com/gfx/mkt/zgpomzjqrpd/Bund%20yields%20back%20below%20zero.PNG

ROUBLE DISCONNECT

Russia’s currency has plunged by more than 30% during offshore trade, its worst week in record. Moscow trade saw a drop of around 20%. The spreads of bid-ask are wide, which is a sign that liquidity is evaporating.

This shows how far Russia is from the global financial market after severe sanctions. Graphic: Russia rouble disconnect, https://fingfx.thomsonreuters.com/gfx/mkt/klvykbbgjvg/Russia%20rouble%20onshore%20and%20offshore.PNG

[ad_2]