Weekly Market Recap – March 11, 2022
More than 300 international companies have ceased or scaled back operations in Russia in an effort to put pressure on President Putin by using sanctions and other economic penalties. The sectors represented range from finance to energy, media, food, transportation, tech, and consumer services. According to the U.N., 1.5 million Ukrainians have fled to Poland and 1 million to other bordering countries.
Thursday’s year-on-year consumer price index report indicated +7.9%, the highest inflation level in 40 years. On a monthly basis, CPI rose 0.8% vs. +0.6%. Other monthly economic data, compared with previous levels, were as follows: consumer credit $7 billion vs. $19 billion, the foreign trade balance (deficit) was -$89.7 billion vs. -$82.0 billion, wholesale inventories +0.8% (unchanged), federal budget -$217 billion vs. -$311 billion, job openings 11.3 million vs. 11.5 million, and job quits 4.3 million vs. 4.4 million. Quarterly statistics (Q4) reported were: household debt (non-federal and non-financial) +0.4% vs. 0.0% and real household wealth +8.6% vs. +2.3%. Weekly initial jobless claims were 217,000 vs. 216,000.
As investors reacted to economic geopolitical responses to the invasion of Ukraine, stock markets continued to weaken. The Dow Jones Industrial Average closed at 32,944.19 (-2.0%) the S&P 500 gave back 2.9% to close at 4,204.3, and the NASDAQ Composite went out at 12,843.81 (-3.5%). CBOE’s VIX settled at 30.75 (-3.8%). In currencies, the U.S. Dollar Index maintained its strength, closing the week at 99.12 (+0.6%). In the commodity sector, prices eased, as per S&P’s GSCI: the portfolio of futures fell to 740.83 (-5.4%).
Metal futures were mixed. Closing prices and percentage movements were as follows: gold at $1,985.00 (+0.9%), silver at $26.160 (+1.4%), platinum at $1,088.60 (-2.5%), palladium at $2,796.80 (-6.2%), copper at $4.6255 (-6.3%) and aluminum at $3,483 (-9.5%).
AAA National at-the-pump gasoline prices have exceeded records in several states, however, correcting from the prior week’s spiking prices, all of the energy contracts we cover in our recap had retreated by week’s end. Friday settlements and weekly percent decreases were: NYMEX WTI at $109.33 per barrel (-5.5%), ICE Brent at $112.67 (-4.6%), heating oil at $3.4176 per gallon (-9.5%), RBOB gasoline at $3.3121 (-6.5%), NYMEX natural gas at $4.725 per MMBtu (-5.8%), and ICE Dutch gas plunged to €131.229 per MWh (-31.8%,).
Of the nine agricultural futures on our radar, five increased, three decreased and one scratched. Those that went into the red were: wheat at $11.06½ (-8.5%), coffee at $2.2195 (-1.0%) and sugar at 19.24¢ (-0.6%). The gainers were: soybeans at $16.76 (+0.9%), corn at $7.62½ (+1.1%), cotton at $121.03 (+4.0%), live cattle at 137.300 (+1.1%) and lean hogs at 102.725 (+2.3%). Cocoa was the sleeper, ending the week at the same $2,620 per metric ton as the previous Friday.
Futures Referenced in Market Recap
|ICE||Dutch TTF Gas||April|
|NYMEX||ULSD (Heating Oil)||April|
|LME||Aluminum||3 Mo. Forward|
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