Surge in Energy Prices will Dominate Global Markets, Sustained Euro Selling in Evidence
Overall risk conditions are likely to remain dominant for global markets in the short term.
As far as the economic impact is concerned, the principal focus is on energy prices with crude surging to fresh 13-year highs in global markets with Brent surging to 13-year highs above $135 p/b before a limited correction.
The US Administration has been leading efforts to put a ban on oil imports from Russia and any ban would have a huge impact on both global markets and the economy.
Food prices have also increased sharply which will intensify fears over higher inflation and sap demand with a stagflation threat.
Global equity markets have been under sustained pressure with a further flow of funds to safe-haven assets.
Overall risk conditions are likely to remain very firmly on the defensive in the short term unless there…
