Concerns that growing lockdowns in China, most recently in Shanghai, could depress demand for resources appears to be weighing on commodity markets this morning. WTI and Brent Crude oil are down 5.5%-6.0%, while gasoline is down 4.9% and Natural Gas is down 0.9%. In metals action, Copper is down 0.5%, but precious metals are taking a bigger hit with Gold down 1.3%, Silver down 1.8% and Platinum down 2.2%.
European indices are up this morning amid press reports that Ukraine may be willing to accept neutrality in peace talks and with the US walking back comments about regime change in Russia made by President Biden over the weekend. The Dax is up 2.2% so far today, while the CAC is up 1.8% and the FTSE is up 0.8%. US index futures are all up 0.1%-0.3% today.
It’s the last week of the month, the quarter and also the fiscal year for many companies in the investment industry, so we could see some action this week as investors position for the spring and the next earnings season. Economic news picks up as the week progresses, headlined by the US budget proposal today (which reportedly may include new wealth taxes), US ADP payrolls on Wednesday, an OPEC+ meeting on Thursday and wrapping up with US nonfarm payrolls and manufacturing PMI reports from around the world on Friday. A few retailers report results this week, including Dollarama, lululemon and Walgreens.
