WS #12970
The dominant signal in this window is the continued escalation of the Ukraine-Russia conflict, with Ukrainian drones striking multiple Russian oil refineries and a Wildberries warehouse in Ryazan, as well as a refinery in Perm. This is corroborated by multiple sources (Bluesky, Moscow Times, Reuters). The strikes hit Russia's 8th-largest refinery (Perm) and the Ryazan refinery, potentially disrupting Russian oil output and supporting oil prices. Separately, a 7.1-magnitude earthquake in Japan has killed at least 13, with rescue efforts ongoing; this may disrupt Japanese industrial production and supply chains, particularly for semiconductors and autos. The KOSPI plunged over 12% in two days, driven by a chip sell-off after SK Hynix missed expectations, deepening the tech rout. BMW announced 8,000 job cuts globally, signaling weakness in European auto demand. On the positive side, European equities edged up on commodity boosts, and Kering's Gucci recovery gained traction. The Fed decision looms, with markets split on rate hike vs. pause. The geopolitical narrative is ESCALATING (Ukraine strikes on Russian energy), while the tech sell-off is DEEPENING (KOSPI crash, SK Hynix miss).
Topics
Key developments
- Ukrainian drones strike Ryazan oil refinery and Wildberries warehouse; Perm refinery also hit
- 7.1-magnitude earthquake in Japan kills at least 13, triggers rescue operations
- KOSPI sinks over 12% in worst two-day drop ever as AI chip sell-off deepens after SK Hynix misses
- BMW to cut 8,000 jobs globally via voluntary redundancy scheme
- European equities advance as Fed policy decision looms; Kering Gucci recovery gains traction