Wake Up Wall Street (SPY) (QQQ): More hopes for peace, but markets remain nervous
Here is what you need to know on Monday, March 14:
Another hopeful tone from a talk between Russia and Ukraine saw European equity markets move sharply higher on Monday before the move began to stall as the realization set in that the end game may not quite be in sight. Hopefully, the war can reach a peaceful conclusion that markets would certainly welcome, but would that be enough to stop the bear that has been unleashed?
That is the key question. Rising commodity costs and inflationary pressures will not roll over that easily, and we get the slate of central bank decisions this week to give us more food for thought. The Fed will get the most attention, and a 25 basis point hike has been penciled in by most observers. More is likely to come and after the ECB's surprisingly hawkish tilt last week. The Fed may still take out a 50 basis point surprise. Equity markets will likely square up early in anticipation of the big decision by the Fed.
Overnight news from China has not helped things with a sizable lockdown in Shenzen, and already we note Apple (AAPL) supplier Foxconn has shut its factory there. For how long is the big question. Experience around the world has taught us that lockdown does not work as effectively against the super transmissible Omicron variant, so this will be an interesting one to keep an eye on. Either way this means more woes for supply chains, so Apple and others will likely suffer on the back of this. The yield route continues to this morning with European yields surging. At least the US yield curve is showing signs of stabilization. Oil is now back to $104, while Gold is at $1,966. The dollar index is also a touch weaker this morning at 98.90.
European markets are higher: Eurostoxx +1.8%, Dax +2% and FTSE +0.7%.
US futures are mixed: Nasdaq -0.3$, Dow +0.6% and S&P+0.3%.
Wall Street News (SPY) (QQQ)
Russia says it has not requested military assistance from China.
India considering a Russian offer to sell oil.
Iran says nuclear discussions taking a break, up to the US now.
Chinese stocks hit on lockdown fears. BABA, NIO, etc.
NIO falls 14% in Hong Kong.
Apple (AAPL): Foxconn closes the factory in Shenzen.
Occidental (OXY) was downgraded by Morgan Stanley.
Lockheed Martin (LMT): Reuters reports Germany to purchase jets.
Ford (F) forecasting a 12% drop in sales this year, according to Automotive News.
Turquoise Hill Resources (TRQ): Rio Tinto offers to buy.
Deutsche Bank (DB) upgraded by Berenberg.
Southwest Gas (SWX): Icahn Enterprises increases tender offer.
Academy Sports & Outdoors (ASO) to join S&P Small Cap 600.
Nokia (NOK) upgraded at Raymond James.
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.
