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SYBA Market Update - Issue #3



 


US bans Russian oil imports


Amidst waves of sanctions, the US President has issued a new set of sanctions primarily targeted at Russia's oil exports. On the 8th of March, the President banned all imports of Russian oil and gas energy.


This will lower the amount of supply of oil in the US, as the President warns against higher gas prices. This is happening when inflation in the US is at its 40 year high, as investors worry more about what this could mean for the coming months.


 



ECB shocks the market


The European Central Bank stated that they may end their bond buying programme in the third quarter, if the economic conditions and data allows it.


This is amidst the Russian-Ukraine conflict, as they acknowledge that this will have material impact on economic activity and inflation.


This shocking move by the ECB further spurred fears of stagflation, although the ECB have shown they are willing to be flexible, and be more data-driven, which helped to quell the markets.


 



President Biden's executive order for bitcoin


President Biden recently signed an executive order, calling on the government to examine the risks and benefits of cryptocurrencies.


This executive order has addressed some regulatory concerns that the crypto industry has, mainly focusing on protecting consumers, illicit activities, financial stability, the competitiveness of the US in crypto, financial inclusion, and responsible innovation.


Bitcoin ran up over 14% on the day the executive order was released, but have given up its gains in the next few trading days.


 



Amazon 20-1 stock split and share buyback


Amazon recently announced a 20-1 stock split, which will effectively mean that the stock price would be $145.52 per share from 11th March closing price.


They also released a $10 billion buyback plan, which is effectively only 0.6% of the total market capitalization.


This was an unexpected move, as the stock price ran up over 5% on the next trading day.


 



Headline inflation 7.9%


The CPI rose 7.9% YoY and 0.8% MoM which is a 40 year high of inflation. Energy prices rose 3.5% for February, as the Russia-Ukraine conflict rages on.


However, it is likely that the CPI data has fully considered the effect of the geopolitical conflict, as investors look for the next month's CPI data to get a better gauge of inflation.


Even excluding the volatile food and energy prices, also known as core CPI, rose 6.4% YoY, which is a far cry from the FOMC's target of 2%.

All eyes are on the FOMC's meeting that is coming up on the 16th of March.


 


Upcoming events


Monday, 14 March

United States - Daylight Saving Time


Tuesday, 15 March

China - Chinese Unemployment Rate

United Kingdom - Unemployment Rate (January)

United States - OPEC Monthly Report

United States - Producer Price Index


Wednesday, 16 March

United States - Retail Sales

United States - Crude Oil Inventories


Thursday, 17 March

United States - FOMC Economic Projections

United States - Fed Interest Rate Decision

United States - FOMC Statement and Press Conference

Singapore - Trade Balance

United Kingdom - Bank of England Interest Rate Decision


Friday, 18 March

Singapore - Unemployment Rate

United States - Existing Home Sales (February)

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