China denies that Russia has requested military and financial aid from the Asian giant

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Posted on March 15, 2022 Yesterday the United States made it public that China might be willing to give military support to Russia. After a meeting between the Asian giant and the US in Rome, the United States informed its European allies that Russia had requested military and financial aid from China, while they have denied these statements. After the meeting, the spokesman for the US State Department declared that any type of support for Russia would have consequences. Today the Moscow government has to settle the payment of coupons in dollars, with foreign exchange reserves frozen and the Moscow stock market remains closed for the third consecutive week, being the longest period of suspension in its history. As for the raw materials market, oil fell 4.5% after the talks between Russia and Ukraine and the confinements decreed in China. Gold also fell due to the rise in interest rate curves and nickel will resume trading on the London Metal Exchange tomorrow. In the foreign exchange market, we started the week with the EUR/USD pair yesterday, Monday, moving in a range of 1.0898-1.0990, to end up closing the session in European time at levels of 1.0975. The euro appreciated considerably against the Japanese yen and the Swiss franc to 129.47 and 1.0278, respectively, at the end of the session. The community currency also appreciated against the pound sterling, to 0.8425, recovering the psychological level of 0.84. In Europe, the wholesale inflation data for Germany in February presented a year-on-year growth of 16.6%, exceeding the estimated figure (15.1%) and the figure for the previous month (16.2%), when returning to the historical maximum. Although this data does not reflect the current evolution of prices after the start of the war between Russia and Ukraine, due to the reading date at the beginning of February, it is therefore expected that wholesale inflation will increase more strongly soon in Germany and the other European economies. Euro Zone government bond yields were also higher on Monday as investors are bracing for the outcome of the various central banks’ monetary policy meetings to be held this week. Meanwhile, hopes of progress in the peace talks related to the conflict between Russia and Ukraine underpinned risk appetite. Later today, the UK unemployment rate will be published and we will also be attentive to the Zew index of economic sentiment, in addition to the speech of the president of the ECB, Christine Lagarde. President Lagarde will speak today at the WELT economic summit in Berlin. If there is any comment on the current situation of the European Central Bank, it is not expected much more than to emphasize the optionality that is being given to the institution given the uncertain perspectives on the horizon. Last week’s decisions show us the pattern that the ECB is on the path of political normalization, with a bias to end net asset purchases in the third quarter. INFORMATIONTitleChina denies that Russia has requested military and financial aid from the Asian giantDescriptionYesterday the United States made it public that China might be willing to provide military support to Russia. After a meeting between the Asian giant and the US in Rome, the United States informed its European allies that Russia had requested military and financial aid from China, while they have denied these statements. Author GLOBALCAJA

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