The market is stepping into the session ahead in a calmer mood, as Russia-Ukraine tensions continue to play out. The siege on Kyiv is running into a stall and sanctions against Russia are looking to be somewhat workable - at least for the time being. We'll see if there will be appetite for harsher sanctions from the West, so that could still upset the balance in the market.
In the meanwhile, there is hope as peace talks may still follow in the days ahead but the situation on the ground isn't going to change whatsoever.
Looking ahead, a lack of news would signify a lesser escalation in the situation and that will keep the market calm so far on the day. Otherwise, we could start to see risk trades hit the skids if Russia does push back with its back against the wall.
As for European trading today, the risk mood is still the key driver of trading sentiment. Don't expect much from the data releases to come. German inflation data will be the key item to watch but that will just reaffirm stronger price pressures last month and keep the ECB on its toes ahead of the March meeting.
0815 GMT - Spain February manufacturing PMI
0830 GMT - Switzerland February manufacturing PMI
0845 GMT - Italy February manufacturing PMI
0850 GMT - France February final manufacturing PMI
0855 GMT - Germany February final manufacturing PMI
0900 GMT - Eurozone February final manufacturing PMI
0930 GMT - UK January mortgage approvals, credit data
1300 GMT - Germany February preliminary CPI figures
That's all for the session ahead. I wish you all the best of days to come and good luck with your trading! Stay safe out there.
