Weekly Market Review & Analysis For February 28, 2022

The market was hit by a 25% rise in the price of crude oil, which was triggered by the worsening events regarding Russia's incursion into Ukraine. The S&P 500 fell 1.3% and was followed by losses in Dow Jones Industrial Average with 1.3%, small-cap Russell 2000 2%, and the Nasdaq Composite 2.8%. 

WTI (West Texas Intermediate) crude futures closed at $114.95 per barrel this week. This was the cause of the 9.3% increase in the S&P500 energy sector market. The utilities sector posted +4.8%, real estate print +1.7%, and the health and medical sectors posted +1.2%, which also saw gains in some defensive positions.

The most sluggish market performers were banking with -4.9%, information technology with -3.0%, communications services with -2.7%, and consumer discretionary with -2.6%; these sectors fell between 2-5%.

This week, Russia has not been deterred by increased sanctions that barred most Russian banks from accessing the SWIFT Financial Transactions System. The central bank of Russia was prevented from accessing its foreign currency reserves.

Fed Chair Jerome Powell said that the central bank would "proceed carefully" because of the uncertainty in the geopolitical landscape. Powell would favor raising rates 25 basis points later in the month. Powell acknowledged, however, that a 50 basis points increase is a viable option if inflation rises more than anticipated.

In a similar vein, the Russian central bank increased the key interest rate by 20% from 9.5% to shield the ruble, which fell in value against U.S. Dollars. Its U.S. Dollar Index rallied a whopping 1.9% to close 98.50 due to weakness in the eurodollar.

The U.S. Treasury market served as a signal for concerns about growth. It was worsened by the lackluster estimates from high-growth stocks and an unsatisfactory ISM Non-Manufacturing Index for February, and stagnant wages in February amid an increasing inflationary climate.

The U.S Treasury Ten-year note yield fell 27 basis points to close to 1.72%. In comparison, the yield on the Two-year note fell by 10 basis points to finish at 1.49% in the wake of expectations for an increase in the Fed to be more restrained when it comes to removing accommodation policies.

In addition to providing more information on the shift in crude oil prices market, the agreement reached between 31 IEA member nations did not see much pleasure in letting sixty million barrels of crude oil out of their reserve. Crude futures leveled off amid the possibility that a nuclear deal with Iran might be signed soon and then climbed back to record highs after the news of it is believed that the White House is considering a restriction on Russian imports of oil.

Asia market(s) slid to conclude this week's trading, with markets remaining cautious regarding the ongoing crisis developing in the eastern region of Europe. Additionally, Europe fell broadly on the crisis's escalating severity as the markets were still tense due to Russia's increased peacekeeping efforts in Ukraine.

Precious metals market

As the Ukraine crisis gets worse, the market on precious metals has risen this week, following the week's high volatility. Gold was closed on Friday at $1,971, an increase of $62 for the week, while silver's price closed at $25.66 and posted a $1.22 gain for the same period.

The precious metals market rebounded strongly in February even when other markets slowed. Gold bullion rose 4.36% year-to-date through the 28th of February 2022, and silver bullion rose 4.90%. Gold mining stocks rallied significantly and increased 10.17% year-to-date. This contrasts with a decrease of 8.23% on the S&P 500 TR Index and losses in the bond market.

This rally is not just the result of a conflict with Ukraine. This is much bigger than that. Many decades of monetary policy are unraveling, partly affected by these Ukraine events. This means that we are facing what could be an event that is so massive that it erases previous bull movements in terms of the percentages and dynamics.

Bitcoin

Monday this week, the crypto market rocketed to our Key Res $44,400 and dropped 7%. Is there enough buying pressure left to push the price of bitcoin through the resistance zone again? Or are the sellers taking over, and will the price fall back to Mean Sup $37,025 and Key Sup $35,150?

The Swiss city Lugano has followed El Salvador's lead by accepting bitcoin as a legal payment method in the crypto news. Next to bitcoin, two other cryptocurrencies, Tether and Lugano's LVGA, have also been accepted. Because the cryptos will become legal - every citizen and company should pay in Lugano!

Stat of the week

Twelve years ago, the idea for the first official cryptocurrency exchange, Bitcoin Market, is born. This started with a proposal on a bitcoin forum, back when bitcoin was trading at about $0.05.

Ukraine crisis

We take no sides in the Ukrainian-Russo confrontation. But is it not possible that Russia has its sphere of influence also? Couldn't an honorable person of rational mind think so? And when American/Israelites warmongers supported overthrowing the democratically elected pro-Moscow government in Kiev in 2014 and hand-picked their stooge replacement – "Arseniy Yatsenyuk (Yats) was the guy" – didn't they have crossed a sacrosanct red line also? 

No dissenting opinion is allowed, as with the Great Plague, Bailout of Wall Street, and the War on Terror. If one feels the need to restrict and control free speech, even if they state the facts, one action isn't based on truth. They are established on something else, like geostrategically created conquest.

You might like these

  •  

    Gold and Silver coins and what you need to know

    If you are thinking about the Gold and Silver coins as an investment, collector item, or preservation of your wealth, it is essential to understand the coin types' relevancy. If you want to know more about these coins, then look no further than here, where we will be going

  •  

    Silver trading and how to succeed

    Silver trading is a crucial and valuable industrial metal for producers and investors, and thanks to its history of being used as currency and retain its value while fiat currency fluctuates

  •  

    Will silver outperform gold?

    If you ever paid attention to silver and gold prices, you know white metal usually follows (and then exaggerates) gold’s patterns. When gold goes up 10%, the white metal usually does the same and then some – but that trend has been far from real lately

This article was printed from TradingSig.com

Print Article