Equities relentless retreating intact as Russia warns oil could surge to $300 - 8.3.2022

The Dollar strengthening has halted currently. The live dollar index data show the ICE US Dollar index, a measure of the dollar’s strength against a basket of six rival currencies, gained 0.7% on Monday.

Both EUR/USD and GBP/USD continued sliding Monday as Sentix reported sharp deterioration in euro zone investor confidence. Euro is little changed against the Dollar currently while Pound is down. USD/JPY reversed its sliding yesterday while AUD/USD reversed climbing with both the yen and Australian dollar lower against the Greenback currently.

Futures on three main US stock indexes are down with the yield on benchmark 10-year Treasury notes up at 1.801% compared with its US close of 1.749% on Monday. US stock market closed solidly down yesterday with travel shares still loss leaders. The three main US stock index benchmarks booked daily losses in the range of 2.4% to 3.6% Monday with Nasdaq ending down 20.1% from its November 19 record high close confirming it was in a bear market.

European stock indexes are falling currently after ending sharply lower yesterday led by bank and autos shares. Asian indexes are retreating today with Shanghai Composite leading losses.

Brent is rising currently. Russian Deputy Prime Minister Alexander Novak said yesterday oil prices could reach over $300 per barrel if United States and its European allies ban Russian oil imports. President Biden held a video conference call with the leaders of France, Germany and Britain seeking their support on the ban. Novak said Russia can retaliate against the European Union and “impose an embargo on gas pumping through the Nord Stream 1 gas pipeline.” Russia currently supplies 40% of Europe's gas. European Union leaders will agree at a summit on Thursday and Friday to phase out the EU's dependency on imports of Russian gas, oil and coal, according to a draft statement. US West Texas Intermediate WTI rose 3.2% and is higher currently. Brent gained 4.3% to $100.99 a barrel on Monday.