Wake Up Wall Street (SPY) (QQQ): Ukraine talks back on, but markets remain on edge
Here is what you need to know on Wednesday, March 2:
Equity markets took a backseat to massive movements in bond yields yesterday as bond traders took an increasingly bearish view on prospects for the global economy. The situation is further clouded by EU inflation hitting a record on Wednesday. This does not even take into consideration recent oil and gas price spikes, so next month's number will be significantly worse. Ordinarily, the euro should spike on such a hawkish number, but the EU is hamstrung by proximity to the conflict and greater economic fallout from sanctions and energy prices.
Instead the EUR/USD exchange rate hit a near two-year low below 1.11. China's banking and insurance regulator said it would not join economic sanctions on Russia. Now all attention turns to the next wave of talks between Russia and Ukraine today. Any positive news will see a relief rally, but this may be short-lived now with global economic growth likely to see many major economies slip into recession.
Oil continues to surge despite some supply increases from OPEC, with Brent at $110 now. The dollar index continues to strengthen at 97.50. Gold is lower at $1,929, and Bitcoin is at $43,900. The US 10-year yield is at 1.76% now, though it was over 2% before the conflict.
European markets are higher: Eurostoxx +1.3%, FTSE +0.8% and Dax +0.1%.
US futures are higher: Nasdaq, Dow, and S&P are all +0.5%.
Wall Street News
OPEC+ agrees to increase production by 400k barrels per day, oil barely moves.
EU CPI +5.8%, a record high.
Ukraine-Russia talks to continue today.
Ford (F) to split combustion and electric businesses. Also reaffirms guidance.
Fed speakers go into blackout ahead of March meeting.
Exxon (XOM) to make no new investments in Russia and exit.
DraftKings (DKNG) top pick at Morgan Stanley in gaming sector.
Palantir (PLTR) and Jacobs (J) form strategic agreement on water treatment.
Salesforce (CRM) up 4% on earnings beat and strong guidance.
SOFI surges on strong earnings.
Abercrombie & Fitch (ANF) down 8% on earnings miss.
First Solar (FSLR) down 12% on earnings miss.
Dollar Tree (DLTR) up on earnings.
Nordstrom (JWN) up 30% on earnings.
Rivian (RIVN) hikes prices.
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.
