US House Approves Additional Aid for Ukraine

This weekend, the US House of Representatives passed a fresh military aid package for Ukraine worth $61bn. This came as 311 Representatives supported the bill against 112 who opposed it and marks a crucial step in bolstering the Ukrainian war effort.

With many elements of Ukraine’s military running low on ammunition, Kyiv has been calling for the additional funds to be released for months and its passing has been met with satisfaction from the country.

The Bill has been held up in the House for some six months with many House Republicans arguing that the release of funds should be contingent on the further federal spending on the US’ southern border. Though following Republican Speaker of the House Mike Johnson’s change of positioning, many Republicans were swayed. Zelensky welcomed the decision and that it “keeps history on the right track”.

Included in the package is $9bn in so-called ‘forgivable loans’ which need not be paid back by Kyiv.

The package will now head to the Senate where it is expected to pass through promptly ahead of being signed off by President Joe Biden later this week. Upon the Bill’s passing in the House, Biden said that “Today, members of both parties in the House voted to advance our national security interests and send a clear message about the power of American leadership on the world stage”. He also urged Capitol Hill to get it through the Senate as soon as possible “so that I can sign it into law, and we can quickly send weapons and equipment to Ukraine to meet their urgent battlefield needs”.

Oil prices edged lower during the course of this morning’s open as they trade at their lowest level in four weeks. Here, WTI crude futures fell below $81 dpb having slid from Friday’s intraday high of $86 dpb. This comes as markets consider easing tensions across the Middle East following Israel’s strike on the Iranian province of Isfahan.

This week gets off to a fairly light start as far as Data is concerned with attention this morning focusing on The People’s Bank of China leaving their benchmark 1-year loan prime rate unmoved at 3.45% along with maintaining their 5-year loan prime rate at 3.95%. This followed a 25bps rate cut at their last monetary policy meeting as Beijing looks to provide a monetary stimulus into an economy which has come under significant pressure.

Later today, we will see the release of Eurozone Consumer Confidence at 1500 this afternoon ahead of the ECB’s President Christine Lagarde speaking at 1630.

Today’s data comes ahead of the release of PMIs tomorrow where markets will be looking to see the latest sign of how the private sector is performing.