Wake Up Wall Street (SPY) (QQQ): Markets soar on peace hopes and oil price collapse
Here is what you need to know on Wednesday, March 16:
Suffice to say I will not be writing this column on Thursday as it is the world's favorite holiday, Saint Patrick's Day. As I am Irish I will be engaging in the traditional Irish way of celebrating with a glass or four of... Ok, this is a family show, let's keep it sensible, but "Happy Saint Patrick's Day" for tomorrow to all our readers.
How nice would it be if we got a peace deal to celebrate? Hopefully, things are moving in the right direction. The markets certainly seem to think so as risk assets soar on some positive comments from the Kremlin. Oil prices collapsing to nearly where they were before the crisis also helped equity markets to soar on Tuesday, and so far that is being carried through to Wednesday. The biggest move is in Chinese tech stocks with DIDI up 40%, and BABA up 20% in the premarket as China says it will support listings and capital markets.
Later today we get the Fed interest rate hike, the first in a cycle expected to be 25 basis points. Markets have largely priced this in, so no major setback is expected. The press conference afterward is where the real work will be done. Yields are again pushing higher as bond markets continue to lose their safe haven flows and return to predicting a long tightening cycle for central banks. This will likely temper any further equity gains, but a peace deal should still give a decent rally before yields likely put a cap on it. The US 10-year is at 2.17% now, up slightly on yesterday and likely to change depending on what the Fed says.
The dollar is lower as the haven trade unwinds, down to 98.57 now for the dollar index. Oil is at $95.84, Gold $1,922, and Bitcoin trades at $40,500.
European markets are higher: Eurostoxx +3.65, FTSE +1.3% and Dax +3.1%.
US futures are higher too: S&P +1.2%, Dow +1% and Nasdaq +1.9%.
Wall Street News (SPY) (QQQ)
Kremlin is looking into a neutral model for Ukraine like Austria and Sweden.
IEA reduce world oil demand forecast for 2022.
Russian Foreign Minister says some formulations of agreements with Ukraine are close to being finished.
Apple (AAPL) supplier Foxconn says it has resumed some operations in Shenzen.
NIO, BABA, DIDI all surge on Chinese regulators' comment about supporting capital markets.
Merck (MRK) says it will not make any further investments in Russia.
Norton (NLOK): the UK to refer Avast merger to a Phase 2 review. Norton down 8% premarket.
Starbucks (SBUX) up after JPMorgan upgrade on China potential.
Lockheed (LMT): US to request 33 fewer F-35s in next budget, according to Bloomberg.
Boeing (BA): US to request 10 more F-15EX fighter jets-Bloomberg.
Upgrades and Downgrades
Source: Benzinga Pro
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Author
Ivan Brian
FXStreet
Ivan Brian started his career with AIB Bank in corporate finance and then worked for seven years at Baxter. He started as a macro analyst before becoming Head of Research and then CFO.
