ASX to fall as Ukraine adds to market volatility

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Australian shares are set to drop as the escalating situation in Eastern Europe spooks investors and sets the scene for another erratic week.

Scott Morrison says crisis between Russia and Ukraine is reaching a “dangerous stage” with warnings of an imminent invasion.Sandeep Biswas is trying to build a more inclusive culture after a “cold shower” of feedback made him realise the approach of his early days is no longer suitable.After predicting the Fed would hike rates seven times this year instead of five, Goldman Sachs strategists also lowered their forecast for US stock returns this year.

The FTSE 100 has outperformed the pan-European STOXX 600 index this year, thanks to its heavy weighting towards banking and commodity stocks.Despite weakness on the day, the FTSE 100 was up 1.9% and the FTSE Mid 250 up 1.6% for the week. New bank lending in China more than tripled in January from the previous month, beating forecasts and hitting a record high. Growth of outstanding total social financing , a broad measure of credit and liquidity in the economy, also accelerated, touching a six-month high.

“The door for March and May interest rate hikes is firmly open,” Andrew Mulliner, head of global aggregate strategies at Janus Henderson wrote in a note before the market adjusted on Friday to price in the move. “Over the past decade, oil and gas companies have had to trim the fat,” said Laura Hoy, an equity analyst at Hargreaves Lansdown. These leaner firms are benefiting the most from the current rally, especially as “elevated oil prices look like they’re here to stay.”

 

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ASX to fall as Ukraine adds to market volatilityAustralian shares are set to drop as the escalating situation in Eastern Europe spooks investors and sets the scene for another erratic week. The only thing escalating is the media’s fear mongering. And Biden’s fear mongering isn’t too far behind you all.
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