Tuesday Markets | Why Russian Sanctions Will Be a Joke
PREMIUM: Why is Inflation Muted in Asia?
Market Rundown
Good Morning:
The dollar is down 16. Bonds are significantly weaker, especially at the short end. This is further flattening ( now inverted in some places) signalling Fed hike is going to come and will cause a recession. Contextual explanation in podcast below in first 3 minutes of podcast. Very relevant for inflation, Oil, and Gold pricing.
Stocks are weaker but well off their lows. Gold is up $5 from Friday’s close. Silver is up 20 cents. Oil is up $2.78 from Friday’s close, but lower this morning in US trading. Grains are up very nicely.
Yesterday we noted Sanctions against Russia will not include Energy in a meaningful way.
Not sure how effective these can be with the exceptions of Oil and Natural Gas being protected from sanctions.- Source
Today creditable energy analysts voiced why that is true:
All major gas producers in the world know that they cannot compensate Russia’s gas to the EU even if they wanted to. Source
Aluminum Companies are a different story…
Cheers.
Posts
A 1997 Prophecy: The Unfolding Of ‘The Sovereign Individual’ Thesis
Global Oil Inventories Are Exceptionally Tight: Reuters Analyst
Weekly Report: The Really Big Pandemic Lie About Netflix and Peleton
OilFix: Founders Group 2022 Energy Outlook Interview with Brynne Kelly
Podcasts
Ukraine Vs Fed …
Bond inversion meaning
Prices relative to Globex vs Nymex/Comex
2 forces riving behavior now
Technical levels and Ukraine comments…
Guidance
Speaking of gold, the traditional haven is outperforming Bitcoin with the cryptocurrency dropping to the equivalent of about 19 ounces per token, down from a peak of 37 ounces in October. Bitcoin’s recovery from a dramatic year-end slide had already been derailed by increasing tensions in Eastern Europe, and its drop to close to $36,000 overnight has some analysts now predicting a move as low as $30,000.
Zen Moment
Checking in on Ukraine…
Have a good one
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Post Excerpt
Bank Report: There are a few reasons why inflation in Asia is well within central banks’ comfort zone.
