Global Markets News Round-up: 20/02/23

US-China tensions continue to escalate as Secretary of State Antony Blinken and China’s State Councilor Wang Yi engaged in a heated conversation in their first meeting since a Chinese balloon entered the US, opening a new rift. The two diplomats discussed a range of issues, including Taiwan, North Korea, and Russia, with Blinken accusing China of considering giving weapons to Russia for the war in Ukraine. 

Meanwhile, Iran’s uranium enrichment activities continue to pose a risk of prompting a new crisis, with international atomic monitors detecting uranium enriched to levels just below that needed for a nuclear weapon. 

Meta Platforms is launching a subscription service called Meta Verified, primarily targeted towards content creators.

European stocks are expected to see gains as investors assess the trajectory of interest rates and geopolitical developments. The S&P 500 index is facing successive weekly losses as the rates market signals negativity, with equities struggling in the face of high inflation and hawkish Fed-speak.

EU diplomats are discussing pooling €4 billion for ammunition purchases for Kyiv, while UK Chancellor Rishi Sunak has urged NATO to finalize a security guarantee for Ukraine by July. 

The White House is planning new sanctions against Russia’s defense, energy and finance sectors. 

Aluminium prices have risen due to reports of capacity cuts at smelters in Yunnan province. 

The UK’s National Health Service is experiencing continued strikes from ambulance workers, junior doctors, and nurses, who are demanding higher pay. 

Meanwhile, property prices are surging across north London, with homes in Camden seeing a 17.2% year-on-year increase in asking prices. 

Finally, Manchester United has drawn a competing bid from British billionaire Jim Ratcliffe, and Iranian officials deny reports that they have enriched uranium beyond 60%.

Markets on Friday:

Asian stocks and European equity futures rose on Monday, as investors weighed hawkish comments from Federal Reserve officials and geopolitical tensions. 

A report from Goldman Sachs predicting a rebound in Chinese stocks also boosted sentiment. 

The dollar’s strength, seen recently, is expected to decline in late first quarter or second quarter as inflationary pressures recede and investors gain more visibility on China’s recovery, according to Paul Mackel, global head of FX research at HSBC Holdings. 

Meanwhile, investors will be watching for more commentary on American consumers as retail earnings reports are released this week, and further signs of a resilient economy could provide more reasons for the Fed to hold rates higher for longer.

Oils gained with hopes on increased Chinese demand while gold remained little changed.

Global indices at 7:00am UKT:

Dow Jones: 33,826.69 (+0.39%)

NASDAQ: 11,787.27 (-0.28%)

FTSE100: 8,004.36 (-0.10%)

CAC40: 7,347.72 (-0.25%)

Sensex: 60,940.87 (-0.10%)

Nifty50: 17,919.55 (-0.14%)

Nikkei225: 27,531.94 (+0.07%)

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