Heavy losses for global stocks today are driven primarily by further, significant declines in Chinese equities amid aggressive, anti-covid lockdowns and worries that Chinese companies could be exposed to US sanctions if Beijing provides support for Russia’s war effort. Stock market weakness has spilled over into commodities, with crude oil sliding another 5%+ so far on the session while metals are mixed (copper firmer, iron ore lower). There has been limited news—no progress, in essence—on Russia/Ukraine talks while investor anxiety may also be heightened as we approach Wednesday’s widely expected Fed rate lift off. European FX is out-performing on the day, with the EUR leading in the overnight performance league against the USD. The JPY has steadied to recover to near 118 while commodity FX, alongside the TWD and ZAR are the under-performers. US data releases this morning include the March Empire survey and Feb PPI but (despite the risk of some “sticker shock” from a 10% print in the headline PPI y/y measure) we expect limited reaction to the data as markets look ahead to Wednesday’s FOMC and continue to monitor geo-political risk.
In my Signal provider I had a profit last week of 2.83%, in the month I already accumulate 3.65% profit with a forecast of 83.52% yearly.
