Taking Stock of Major Market Moves

Russia, Ukraine News and Analysis

  • Fire near Europe’s largest nuclear plant sparks panic in European markets
  • NFP Figure lifts US Dollar as economic data returns to the fore
  • Oil and gold rise as markets prepare for the weekend

Fire Near Europe’s Largest Nuclear Plant Sparks Panic

European markets woke up to worrying news on Friday about a nuclear scare as a fire broke out in a building at the site of Europe’s biggest nuclear power station. The fire is reported to be contained and there are no signs of elevated levels of radiation. The fire looks to have been to the result of tense fighting in the area this morning as Russian soldiers advanced. Ukraine’s nuclear agency reports that the Russian military forces have subsequently seized the Zaporizhzhia facility.

The office of British Prime Minister Boris Johnson says he will seek an emergency U.N Security Council meeting in the wake of the near-catastrophic blaze. Boris Johnson raised concerns that the reckless actions of (Russian President Vladimir) Putin could now directly threaten the safety of all of Europe”.

European Equities Plunge on Friday

In Germany, the DAX 40 Index dropped sharply, taking out key areas of support as it remained on track to post a 10% weekly drop.

DAX 40 Daily Chart Showing Friday’s Continued Sell-off

Source: IG, prepared by Richard Snow

Likewise, the FTSE witnessed a sharp drop, testing the historically important 7000 level before recouping some of the losses in late trading on Friday.

FTSE 100 Daily Chart

Ukraine in Crisis: Taking Stock of Major Market Moves

Source: IG, prepared by Richard Snow

For more on these markets, take a look at the full article.

Russian Stock Exchange to Remain Closed for Now, LSE Suspends Russian Stocks

The Moscow Stock Exchange (MOEX) was shut for a fifth day on Friday after the Central Bank of Russia confirmed it is to remain closed. The decision to halt trading came after last Friday when MOEX suffered a 50% decline.

The LSE froze trading in global depositary receipts (GDRs) – certificates that represent foreign shares – as part of a wider effort to isolate Russia from global financial markets. The majority of these Russian-linked stocks had already posted losses around 90% before the suspension on Thursday.

NFP Figure Lifts US Dollar as Economic Data Returns to the Fore

Understandably, in times of global conflict, scheduled event risk tends to take a back seat as geopolitical events influence market reactions. However, Friday’s NFP data confirmed 678k new jobs added to an already strong US labor market resulting in a decent move higher in the US Dollar Basket Index.

US Dollar Basket (DXY) Daily Chart

Ukraine in Crisis: Taking Stock of Major Market Moves

Source: IG, prepared by Richard Snow

Gold and Oil Rise as Markets Prepare for the Weekend

Strategist, Nick Cawley explains, “with risk continuing to provide a strong tailwind, gold may look to re-test last Thursday’s spike-high at $1,974/oz. shortly. The ATR volatility indicator is at a multi-month high and traders should be aware of the potential for sharp price moves before deciding to enter the market.”

See the full article for more on gold.

Gold Daily Chart

Ukraine in Crisis: Taking Stock of Major Market Moves

Source: IG, ProRealTime, prepared by Nick Cawley

Brent Crude Oil Possible Shorter-Term Exhaustion

Strategist, Paul Robinson suggest, “WTI crude oil run appears to have come to a pause, at least in the near-term. Thursday’s sharp $10 turnabout indicates exhaustion in recent buying and sets it up to trade sideways to lower. Adding conviction to this notion is where the reversal occurred.”

Adding context, Paul continues, “There are several peaks that were created in each year from 2011 to 2013 in the vicinity of 111 to 115. Powerful price action combined with significant long-term resistance makes for a compelling case for lower prices. At least for now.”

Read the full article for more technical analysis on crude oil

Crude Oil (CL1!) Daily Chart

Ukraine in Crisis: Taking Stock of Major Market Moves

Source: TradingView, prepared by Paul Robinson

— Written by Richard Snow for DailyFX.com

Contact and follow Richard on Twitter: @RichardSnowFX