Morning wrap (21.03.2022)

• Indices from Asia traded mostly lower at the beginning of a new week. S&P/ASX 200 dropped 0.22%, Kospi declined 0.8% and indices from China traded 0.1-1.0% lower

• European and US index futures trade lower ahead of European cash session open

• Russian invasion of Ukraine continues. Russia made no major progress as land offensive basically stalled, according to Western intelligence agencies. Shelling and missile strikes on cities remain main part of Russian strategy

• Media reports claim that European Union countries are considering whether to impose ban on Russian oil and decision may come as soon as this week

• Moscow Stock Exchange will open for bond trading today and Russian central bank announced it will actively purchase government bonds to neutralize volatility 

• Saudi Aramco, world's largest oil producer, said that it aims to boost investment by 50% this year in order to boost production capacity. Company's actual output will, however, remain dependant on guidelines from Saudi energy minister

• Germany reached an agreement on long-term natural gas supply with Qatar. In a major twist, Germany may become independent from Russian gas as soon as next year

• People's Bank of China left 1- and 5-year prime rates unchanged at 3.7 and 4.6%, respectively

• Cryptocurrencies trade mixed. Bitcoin drops around 1% and trade below $41,000 handle

• Oil trades higher amid possibility of EU embargo on Russian oil. Brent jumps 3% and trades above $108 per barrel

• Precious metals trade higher. Palladium is outperformer as it gains almost 3% and breaks above $2,500

• NZD and jPY are the best performing major currencies while CHF and AUD lag the most. Trading ranges on the FX market during the Asian session were narrow

Oil is trading higher at the beginning of a new week following reports of possible EU embargo on Russian oil. OIL.WTI trades almost 3% higher today and tests resistance zone marked with 38.2% retracement of a recent pullback ($107 area). Source: xStation5