Markets
Equities are selling off to start the week with ramping COVID restrictions out of China amid low liquidity conditions ahead of the closely watched US CPI and the start of earnings season, likely exacerbating the cross-asset fallout. And with the European natural gas story now on everybody's mind and nowhere near fully priced, the toxic elixir has global investors teetering on the edge of a dumpster fire.
Oil
Oil prices continue to teeter-totter between demand destruction and supply concerns.
The global oil complex appears to have reoriented around the Russian disruption reasonably well, with India and China (among others) buying more (cheap) Russian crude and making products from other sources available to European buyers.
However, prices remain top-heavy as elevated stagflationary pressures in Europe will worsen if Russia cuts off the gas flow, making this the perfect storm scenario to send recessionary shock waves around the globe. And over the weekend, headlines about COVID-19 cases in China continue to sully the view.
Forex
The sentiment improvement driven by Friday's robust US payroll data was short-lived, with macro assets turning risk-off. Multiple currencies such as EUR, CE3, and CLP are testing new lows. Meanwhile, the dollar strengthening against both G10 and EM currencies as the risk of renewed COVID restrictions in China fuels concerns about the global growth outlook.