Asian Open: Conflicting headlines around Russian Invasion sparks volatility

Monday US cash market close:

The Dow Jones Industrial fell -171.89 points (-0.49%) to close at 34,566.17
The S&P 500 index fell -16.97 points (-0.39%) to close at 4,401.67
The Nasdaq 100 index rose 14.756 points (0.1%) to close at 14,268.60

Asian futures:

Australia's ASX 200 futures are down -64 points (-0.9%), the cash market is currently estimated to open at 7,179.90
Japan's Nikkei 225 futures are down -40 points (-0.15%), the cash market is currently estimated to open at 27,039.59
Hong Kong's Hang Seng futures are down -99 points (-0.41%), the cash market is currently estimated to open at 24,457.57
China's A50 Index futures are up 9 points (0.06%), the cash market is currently estimated to open at 14,961.22

It was another volatile day’s trade on Wall Street with the US closing its embassy in Kyiv and Ukraine President announcing a Russian invasion could be on Wednesday. Earlier reports claimed Russia would continue talks with NATO and the US. And the invasion claim has since been walked back by a senior official which helped US indices recoup earlier losses, with tech stocks even posting a minor gain. Small bullish hammers formed on the Dow Jones and S&P 500 daily charts and the Nasdaq 100 posted a minor gain of around 0.3% by the close.

Yet energy prices weren’t taking any chances on conflicting reports of a Russian invasion, as they simply rose on demand concerns. Crude oil is up around 1.8%, natural gas rose 5.6%, heating oil gained 1.2% and gasoline around 1%.

ASX 200 to get off lightly again today?

The ASX 200 defied the gravity of a Wall Street selloff yesterday, dare we say, may get off lightly again today. The utilities and financial sectors, which account for around 50% of the index, continue to perform well overall and were top performers last week, which is providing a decent level of support for the broader market. And with energy prices higher overnight then logic assumes the energy sector will continue to shine. It’s up 16% YTD, rose over 3% yesterday and looks set to be the top performer again today.

ASX 200: 7243.9 (0.37%), 11 February 2022

Energy (3.36%) was the strongest sector and Healthcare (-1.37%) was the weakest
6 out of the 11 sectors closed higher
5 out of the 11 sectors closed lower
4 out of the 11 sectors outperformed the index
82 (41.00%) stocks advanced, 107 (53.50%) stocks declined

Outperformers:

+9.43% - Beach Energy Ltd (BPT.AX)
+7.9% - Evolution Mining Ltd (EVN.AX)
+7.35% - Mercury NZ Ltd (MCY.AX)

Underperformers:

-10.8% - Novonix Ltd (NVX.AX)
-9.52% - Imugene Ltd (IMU.AX)
-7.89% - Liontown Resources Ltd (LTR.AX)

USD and yen took safe-haven bids

The US dollar was the strongest major throughout most of the session as it enjoyed its safe-haven bid yet, similar to US indices, saw a reversal later in the session to hand back earlier gains. Strong oil prices ultimately helped CAD take the top spot, the US dollar index rose to a 9-day high on the back of a weaker EUR.

StoneX Europe Ltd makes no representation or warranty and assumes no liability as to the accuracy or completeness of the information provided, nor any loss arising from any investment based on a recommendation, forecast or other information supplied. You should always seek independent advice as to your suitability to speculate in any related markets and your ability to assume the associated risks, if you are at all unsure. We are not under any obligation to update any such material. Any opinion made may be personal to the author and may not reflect the opinion of StoneX Europe Ltd.

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 76% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. Please ensure you fully understand the risks involved by reading our full risk warning.

FOREX.com is a trading name of StoneX Europe Limited, and FOREX.com/ie is a domain operated by StoneX Europe Ltd, a member of StoneX Group Inc. StoneX Europe Ltd, is a Cyprus Investment Firm (CIF) company registered to the Department of Registrar of Companies and Official Receiver with a Registration Number HE409708, and authorized and regulated by the Cyprus Securities & Exchange Commission (CySEC) under license number 400/21. StoneX Europe is a Member of the Investor Compensation Fund (ICF) and has its registered address at Nikokreontos 2, 5th Floor, 1066 Nicosia, Cyprus.

StoneX Europe Limited is registered with the German Federal Financial Supervisory Authority (BaFin). BaFin registration ID: 10160255

FOREX.com is a trademark of StoneX Europe Ltd, a member of StoneX Group Inc.

The statistical data and the awards received refer to the Global FOREX.com brand.

This website uses cookies to provide you with the very best experience and to know you better. By visiting our website with your browser set to allow cookies, you consent to our use of cookies as described in our Privacy Policy.

Through passporting, StoneX Europe is allowed to provide its services and products on a cross-border basis to the following European Economic Area ("EEA") states: Austria, Bulgaria, Croatia, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Ireland, Italy, Latvia, Liechtenstein, Lithuania, Luxembourg, Malta, Netherlands, Norway, Poland, Portugal, Romania, Slovakia, Slovenia, Spain, Sweden.

Additionally, StoneX Europe Ltd is allowed to provide Investment and Ancillary Services to the following non-EU jurisdiction: Switzerland.

StoneX Europe Ltd products, services and information are not intended for residents other than the ones stated above.

Tied Agent Information: KQ Markets Europe Ltd with Company No. HE427857.
Address: Athalassas 62, Mezzanine, Strovolos, Nicosia Cyprus.
Services Provided: Reception and Transmission of Orders.
Commencement Date: 06/12/2022
Website: KQ Markets - CFD Trading | KQ Markets

We may pay inducements, such as commissions or fees, to affiliates or third-party introducers for referring clients to us. This is in line with regulatory guidelines and fully disclosed where applicable.

StoneX Europe Ltd may make third party material available on this website which may contain information included but not limited to the conditions of financial markets. The material is for information purposes only and does not contain, and should not be construed as containing, investment advice and/or investment recommendation and/or an investment research and/or an offer of or solicitation for any transactions in financial instruments; any decision to enter into a specific transaction shall be made by the client following an assessment by him/her of their situation. StoneX Europe Ltd makes no representation or warranty and assumes no liability as to the accuracy or completeness of the information provided, nor any loss arising from any investment based on a recommendation, forecast or other information supplied. You should always seek independent advice as to your suitability to speculate in any related markets and your ability to assume the associated risks, if you are at all unsure. We are not under any obligation to update any such material. Any opinion made may be personal to the author and may not reflect the opinion of StoneX Europe Ltd.