Hello and welcome to our ongoing coverage of the global economy, financial markets, eurozone and business.
The International Monetary Fund mission is beginning discussions in Ukraine for the second review of the Fund-supported program, the global lender said today. (Meetings will be held virtually.)
Ukraine hopes the talks will lead to a disbursement of $700 million under the IMF’s $5 billion program and reassure markets that have been rocked by the deepening crisis.
Western nations and Japan unveiled new sanctions yesterday in response to Vladimir Putin’s decision to send troops to separate areas of eastern Ukraine and officially recognize them as independent states.
The United States, European Union, United Kingdom, Australia, Canada and Japan announced sanctions targeting Russian banks and elites, while German Chancellor Olaf Scholz halted the Nord Stream 2 gas pipeline , a major Russian gas project.
Britain will also prevent Russia from selling sovereign debt to London, with similar moves by the United States and Canada.
Asian stock markets cautiously rose slightly after yesterday’s losses, with the exception of Japan’s Nikkei, which fell 1.7%. Hong Kong’s Hang Seng rose 0.67%, the Shanghai Composite Index gained nearly 1% and South Korea’s Kospi rose 0.47%. European markets should follow when they open.
Ipek Ozkardeskaya, Senior Analyst at Swissquote Bank, said:
More sanctions are expected in the coming days, but the measures that have been announced so far are not as severe as feared.
The market mood is not cheerful, but the softer-than-expected sanctions are helping to lift some spirits. Risk appetite is limited, of course, except on some key assets, notably oil and commodities.
European natural gas futures jumped 8% yesterday, a barrel of Brent crude flirted with the $100 mark, while US crude climbed above $96 before returning to the 93 level $ this morning. Although we have learned that oil prices are high enough to boost US production throughout the year, Iraq and Nigeria are apparently unwilling to pump any faster, even prices have reached low figures. three digits. Price dips are seen as attractive buying opportunities as the trend remains comfortably positive.
This morning we get to hear from Bank of England Governor Andrew Bailey, along with members of the Monetary Policy Committee Ben Broadbent, Jonathan Haskel and Silvana Tenreyro, when questioned by MPs on the Treasury Select Committee, on interest rates and cost of living.
- 7:45 a.m. GMT: Confidence of French companies
- 09:30 GMT: Treasury select committee questions Bank of England Governor Andrew Bailey and other policymakers
- 10 a.m. GMT: Final euro zone inflation for January (forecast: 5.1%)