The only forex was nursing even larger losses in opposition to the Swiss franc. It’s down virtually 4% over the week in its greatest such fall since January 2015, when Switzerland deserted the franc’s three-year-old cap in opposition to the euro.

Russia’s escalating struggle in Ukraine has despatched commodity and vitality costs hovering, boosted secure havens and hammered Europe’s frequent forex and its inventory markets. Under are six charts displaying the current dramatic market strikes:

EURO IN THE DOLDRUMS
The euro fell under $1.10 on Friday for the primary time in virtually two years, having shed over 3% in opposition to the greenback this week for its greatest weekly fall since March 2020.

The only forex was nursing even larger losses in opposition to the Swiss franc. It’s down virtually 4% over the week in its greatest such fall since January 2015, when Switzerland deserted the franc’s three-year-old cap in opposition to the euro.

Worries that Russia’s invasion of Ukraine will deal the financial system a recent blow, particularly as vitality costs soar, clarify why the forex is likely one of the week’s greatest losers.

GRAINS & METALS
Costs of uncooked supplies from wheat to numerous metals have soared to multi-year highs as Western sanctions have disrupted air and sea shipments of commodities produced and exported by Russia.
Russia and Ukraine are two of the world’s greatest exporters of wheat, which scaled a 14-year peak on Friday, having gained almost 40% since Russia invaded Ukraine on Feb. 24.
Russia can be a provider of metals. Aluminium hit a report excessive on Friday whereas copper, the place the nation provides 3.5% of world provides, was additionally flirting with a recent all-time peak.

ENERGY & GAS
Brent crude costs rose one other 21% over the week, closing at their highest since 2013, with consumers and shippers more and more shunning Russian oil provides which complete as much as 5 million barrels per day (bpd).
Neither the potential for 1,000,000 bpd of Iranian crude approaching faucet in case of a revived nuclear cope with the West nor developed international locations’ deal for a coordinated launch of 60 million barrels made a dent.
European fuel costs notched an astonishing 120% weekly achieve , to hit 208 euros per megawatt hour — a report excessive.

EUROPEAN BANKS PUNISHED
European banks had one other gruelling week, hit by a triple whammy of Western sanctions on Russia, a scaling again of fee hike expectations and a worsening macroeconomic atmosphere.
The strikes reverse all of the features made earlier this yr when it appeared that financial restoration would enable central banks to boost rates of interest, benefiting banks.
A European banking shares index fell round 16%, its worst week since March 2020, bringing year-to-date losses to twenty%. Shares in Russia-exposed lenders resembling Austria’s Raiffeisen and France’s SocGen fell round a 3rd over the week.

LOVING BUNDS
Turmoil in European markets, heightened uncertainty over the financial outlook and a scaling again of rate-hike bets meant buyers have been eager to snap up safe-haven bonds.
In Germany — the euro space’s benchmark bond issuer — 10-year bond yields fell 30 bps this week of their greatest one-week fall because the euro debt disaster in 2011.
At -0.08%, German Bund yields are again in detrimental yield territory. In different phrases, buyers are keen to pay Germany’s authorities to carry its bonds in an unsure atmosphere. That was not the case per week in the past, when Bund yields stood at 0.22%.

ROUBLE DISCONNECT
Russia’s rouble has tumbled greater than 30% in offshore commerce – its worst week on report – and round 20% in Moscow commerce. Bid-ask unfold are very large – an indication of evaporating liquidity.
The divergence between onshore and offshore commerce illustrates simply how disconnected Russia has change into from international monetary markets after extreme sanctions and countermeasures.

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