Morning wrap (21.02.2022)

• Traders from Asia launched a new week in downbeat moods. Nikkei dropped almost 0.8%, indices from China traded 0.1-1.1% lower while Kospi finished flat. S&P/ASX 200 gained 0.16%

• DAX futures point to a higher opening of the European cash trading session today

• Moods improved somewhat following news of a potential Biden-Putin summit

• Biden agreed to meet with Putin but only under condition that Russia does not invade Ukraine

• Reports of fighting between Ukrainian army and Russian-backed separatist continued over the weekend

• Satellite images show continued build-up of Russian troops and equipment near border with Ukraine

• Biden will meet with G7 leaders on Ukraine this Thursday

• According to Reuters, the United States finished preparing a package of sanctions to levy on Russia in case of an invasion. Those include sanctions on Russian as well as personal sanctions on Putin's top officials and allies

• People's Bank of China left 1-year lending rate unchanged

• Japanese manufacturing PMI dropped from 55.4 to 52.9 pts in February (exp. 55.0)

• South Korean exports increased 13.1% YoY in the first 20 days of February while imports were 12.9% YoY higher. Semiconductor exports increased 18.1% YoY

• Cryptocurrencies trade slightly higher on the day. Bitcoin tests $39,000 area while Ethereum trades near $2,700

• Oil trades slightly lower at the beginning of a new week. Precious metals drop as well

• AUD and NZD are the best performing major currencies while JPY and USD lag the most

Russian ruble is trading higher at the beginning of a new week. USDRUB currency pair is pulling back from a mid-term resistance zone ranging below 77.00 handle. The pair is currently trying to break back below the 200-hour moving average (purple line). Source: xStation5