Julien Ponthus gives a look at what lies ahead for markets today.

Overnight, global markets surged as investors praised China’s promise to support their economy and chased the elusive ceasefire in Ukraine. They also saluted the U.S. Federal Reserve’s hawkish interest-rate liftoff.

However, even with the optimistic mood of this morning, market turmoil caused by Russia’s invasion in Ukraine won’t go away.

Trades were halted by the London Metal Exchange on Wednesday due to an unprecedented spike in nickel price, which led traders to lose billions of dollars.

It’s a complete mess. “It’s embarrassing and disorderly does not even begin to describe what it is,” said one metals trader about the chaos surrounding the reopening at LME of nickel trading.

After last week’s spontaneous rally, which briefly pushed crude oil to an 2008 peak of $139/barrel in 2008, the markets for oil are also shaking wildly.

Prices are rising again this morning after the International Energy Agency stated that the markets might lose three million barrels per hour of Russian crude beginning in April. Boris Johnson from Britain failed to get a promise to boost production from Saudi Arabian and United Arab Emirates.

The Fed’s projection that the Fed would raise its policy rates to 1.75%-2% in the next year was wrong led foreign currency markets to make counter-intuitive decisions.

All the excitement in the U.S. stock market after the Fed announcement was over, analysts who were quick to comment on tightening monetary policy noticed a worrying recurrence.

Today’s investors are anticipating a Bank of England hike and could be reluctant to seek a breakthrough in Ukraine peace negotiations. This is after President Joe Biden referred to Russian President Vladimir Putin as a “war crime” that the Kremlin called “unacceptable, unforgivable rhetoric”.

These are the key developments expected to give more direction for markets Thursday

German Car Registrations

UK Car Registrations

– Ukrainian President Volodymyr Zelenskiy to speak on video link to German  parliament

– ECB Board members Philip Lane, Isabel Schnabel and  Elizabeth McCaul; ECB President Christine Lagarde speak

– U.S. Philadelphia Fed Index /weekly unemployment claims/housing starts/industrial output