The war in Ukraine has tended to increase uncertainty regarding inflation and growth prospects. When and with what consequences this war will end is pure speculation, but capital markets are expected to build a certain immunity to the headline risks in the coming weeks. The medium- to long-term consequences, on the other hand, could be significant. It is possible that we are at the beginning of a new bloc formation or a new Cold War. This would put a significant damper on globalization and further fuel higher structural inflation. 

Wall Street closed lower on Monday, with the Dow losing 184 points while the S&P 500 and the Nasdaq fell 0.7% and 1%, respectively, extending last week’s sharp losses, dragged down by heavyweight tech and high-growth equities. Losses were also the order of the day on European bourses, where the Euro Stoxx 50 recovered some ground in the afternoon but was still down almost 1% by the end of the day. 


  • Shares in Asia were mixed this morning after sharp falls to start the week. Gains were registered in Japan, South Korea, and Australia while Hong Kong and mainland Chinese markets continued to drift lower. 
  • European shares are poised to edge higher this morning in line with the positive direction of US futures. 
  • Oil prices fell on Tuesday after a sharp jump in the prior session, as worries over a global economic slowdown that will hurt fuel demand offset the prospect of possible OPEC+ output cuts. In the meantime, IEA said that member nations could release more oil from strategic reserves if they find it necessary when the current scheme expires. 
  • The European Union is set to meet its gas storage goal two months ahead of target as the bloc braces for a tough winter. Reserves were filled up to 79.4% as of last Saturday with a target of 80% by 1st November. Still, the bloc is preparing emergency steps to fix its power market and the French government urged businesses to cut energy use or face possible rationing. 
  • Ukraine yesterday announced a military offensive in areas across its south, signalling the launch of a long-awaited push to retake Russian-held territory. 
  • Elon Musk said on Monday he aimed to get self-driving Teslas ready by year-end and hopes they could be in wide release in the United States and possibly in Europe, depending on regulatory approval. 
  • AstraZeneca CEO Pascal Soriot advised against the implementation of an annual Covid-19 booster jab policy as healthy individuals who have already received a booster are likely to stay protected for more than a year.