The lead in to the Asia session:
- UK Times reports that Ukriane's Zelensky survives three assassination attempts in days
- Reports again that Russian military preventing firefighters from firefighting operations
- Canada's PM Trudeau says "unacceptable attacks by Russia must cease immediately"
- US Senator Lindsay Graham calls for the assassination of Russian President Putin
- The UK is seeking a UN Security Council meeting re Russia attack on nuclear power plant
- Biden spoke with Ukraine President Zelensky about the nuclear power plant fire
- Calming statement emerging from the attack on nuclear power plant now
- Firefighting crews have reportedly been allowed access to on fire nuclear plant
- PBOC sets USD/ CNY reference rate for today at 6.3288 (vs. estimate at 6.3143)
- Ukraine nuclear reactor on fire - spokesman says there is nuclear fuel inside
- Brent up $4, US oil up $%, ES & NQ smashed, USD and yen higher
- 2 of 6 reactors at Europe's largest nuclear plant in Ukraine have been safely shut down
- Ukraine has asked Russia to stop shelling Europe's largest nuclear power plant
- USD, yen up and 'risk' falling - Russia is shelling Europe's largest nuclear power plant
- Reports that the Zaporizhzhia nuclear power plant in Ukraine is on fire
- More from Fed's Williams (so much more)
- Japan jobs data for January: Unemployment rate 2.8% (expected 2.7%)
- Fed's Williams says the Bank must be data-dependent & transparent
- Japan moves further to ease the impact of rising gasoline prices
- New Zealand Consumer Confidence Index hit a record low in February
- US nonfarm payroll report due Friday - Goldman Sachs preview
- US' Raimondo says examining if tariff exclusions could help lower inflation
- More from BoC Gov Macklem - will discuss QT at the April policy meeting
- Trade ideas thread - Friday 04 March 2022
- China-based Asian Infrastructure Investment Bank suspends activities in Russia, Belarus
- NATO has warned shipping of the risk of mines in the Black Sea
- US major indices close lower. The Nasdaq gives back the gains from yesterday
- S&P cut Russia's rating to CCC- (from BB+)
- More from BoC Governor Macklem - expresses confidence inflation will fall to 2% in time
The Zaporizhzhia Nuclear Power Station is in Enerhodar, a city on the Dnipro River that accounts for about one-quarter of Ukraine’s power generation. The Station is Europe’s largest with six reactors. The reports that it was under attack, Russian military shelling the facility, did not immediately trigger a flight out of risk and into haven trades. However, after a few minutes, the moves that did come were sharp. In summary,
- oil jumped,
- equities were slammed lower,
- the USD and JPY were bought,
- bonds were bought
- and other FX sold.
The reports that followed spoke of fire in one of the reactors, which was shut for maintenance but did contain nuclear fuel. Those with knowledge of nuclear power generation were very concerned of a possible meltdown should cooling systems be impacted.
The troubling situation was compounded by reports that firefighters could not do their jobs as the attack was continuing.
As time passed the reports coming out became a little less troubling (the fire was said to be in a training/admin building on the perimeter of the facility, and firefighters had eventually been given access, radiation levels were showing within normal ranges were three items that eventually filtered out). The market reaction referred to above retraced as the reports out of the plant became less alarming. ‘Risk’ FX rallied, as did USD/JPY and equities.
US President Biden and Ukraine President Zelensky spoke about the incident. Zelensky’s statement was blunt:
“Russian army has opened fire on Zaporizhzhia NPP. No state except Russia has ever opened fire at nuclear power units. For the first time in human history, a terrorist state has resorted to nuclear terror. Only immediate European action can stop Russian troops”.
US Senator Lindsay Graham followed up with a call for the assassination of Russian President Putin.
Prior to all this earlier news was of S&P ratings agency cutting Russia’s credit ratings by eight levels. The agency cited sanctions rendering a large part of Russia’s reserves inaccessible. This will undermine the Russian central bank’s ability to act as lender of last resort.
There were the odd data points released during the session and Federal Reserve NY President Williams spoke. These all faded to irrelevance with the nuclear plant attack.
AUD/JPY (as the risk barometer) through the session:
