Macro Roundup (Feb 22)

SHANGHAI, Feb 22 —This is a roundup of global macroeconomic news last night and what is expected today.

Currency markets started the week nervously eying tensions in eastern Europe, with the safe-haven yen not far from a two-week high while the euro was on edge given the energy security and economic implications for Europe of a war in Ukraine.

“Russia-Ukraine tensions are starting to dominate risk sentiment and price action. The market is likely to keep chasing headlines without any clarity on the eventual outcome,” said analysts at Barclays in a note.

Illustrating this, the euro took a small lift early in the Asian session after the office of French President Emmanuel Macron said U.S. President Joe Biden and Russian President Vladimir Putin have agreed in principle to hold a summit on the Ukraine crisis, though it added such a meeting would be impossible if Russia invaded Ukraine.

Stock futures fell sharply on Monday night, as traders continue to monitor brewing tensions between Russia and Ukraine.

Futures tied to the Dow Jones Industrial Average were down by 476 43 points, or 1.4%. S&P 500 futures slid 1.7%, and Nasdaq 100 futures were off by 2.2%. The U.S. stock market was closed Monday due to the President’s Day holiday.

Russian President Vladimir Putin said Monday that he would recognize the independence of two breakaway regions in Ukraine, potentially undercutting peace talks with President Joe Biden. That announcement was followed by news that Biden was set to order sanctions on separatist regions of Ukraine, with the European Union vowing to take additional measures.

Oil prices fell on Monday on a plan for U.S. President Joe Biden and Russia’s Vladimir Putin to hold a summit on the Ukraine crisis and on prospects of a nuclear deal between Iran and world powers in the next week or two.

The office of French President Emmanuel Macron said in a statement on Monday he had pitched to both leaders a summit over “security and strategic stability in Europe.” The White House said Biden had accepted the meeting “in principle” but only “if an invasion hasn’t happened.”

Brent crude futures fell 73 cents or 0.8% to $92.81 at 0224 GMT after having jumped more $1 than to $95.00 in early trade, its highest level since Wednesday.

US West Texas Intermediate (WTI) crude futures similarly fell 52 cents or 0.6% to $90.55 a barrel after having hit a high of $92.93.

Spot gold fell 0.2% to $1,893.80 per ounce by 0139 GMT, retreating from $1,908.02 — its highest since June 3 hit earlier in the session. U.S. gold futures were steady at $1,898.60.

Spot gold fell 0.2% to $1,893.80 per ounce by 0139 GMT, retreating from $1,908.02 — its highest since June 3 hit earlier in the session. U.S. gold futures were steady at $1,898.60.

Purchasing managers’ index figures in the euro zone and U.K. came in at multi-month highs.