Global stocks snapped a four-day losing streak Wednesday as investors looked to hopeful signs of de-escalation in the Russia-Ukraine crisis.
U.S. equity futures bounced higher Wednesday, while oil prices eased and the dollar retreated against its global peers, as investors looked to hopeful signs of de-escalation in the Russia-Ukraine crisis.
President Joe Biden made his first push for targeted sanctions on Russia and its government elite last night following the recognition breakaway republics in and the insertion of ‘peacekeeping’ troops the Donbass region of eastern Ukraine.
Britain unveiled sanctions against Russian-backed banks and billionaires late Tuesday, as well, adding to U.S. limits on Promsvyazbank that limits its ability to do defense-related deals, as well as VEB, which facilitates debt sales for the Russian government.
However, with President Vladimir Putin insisting he’s open to a diplomatic solution to the crisis, and analysts suggesting the sanctions are mild enough to encourage near-term dialogue, investors were able to claw back some of yesterday’s steep losses in risk assets.
The MSCI World index snapped a four day losing streak and U.S. oil prices dipping back towards the $90 per barrel mark in overnight trading amid a move linked to the fact that sanctions weren’t focused on the energy industry.
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“We can expect markets to remain volatile as they will have knee-jerk reactions over the next few days as the situation develops,” said Nigel Green, CEO of the financial advisory deVere Group. ““In terms of what investors should do against a flurry of worrying headlines on major geopolitical issues, it is not ‘sell in a panic’, or the opposite reaction: ‘buy everything’. For most long-term investors, it is ‘keep calm and carry on’.”
On Wall Street, where the S&P 500 ended in correction territory — a level defined as 10% below a recent peak — following yesterday’s sell off, futures tied to the benchmark are indicating a 28.5 point opening bell gain.
Futures linked to the Dow Jones Industrial Average are priced for a 180 point advance while Nasdaq Composite futures are indicating a 145 point gain for the tech-focused benchmark as 10-year Treasury note yields edge higher, to 1.97%. in overnight trading.
Palo Alto Networks (PANW) – Get Palo Alto Networks, Inc. Report were a notable pre-market mover, rising 8% after it posted stronger-than-expected second quarter earnings and a robust outlook for its cybersecurity products.
Lowe’s Companies (LOW) – Get Lowe’s Companies, Inc. Report gained 2.5% after it posted stronger-than-expected fourth quarter earnings, while boosting its 2022 outlook, as the home improvement group grabbed market shares from its larger rival Home Depot (HD) – Get Home Depot, Inc. Report.
Tesla (TSLA) – Get Tesla Inc Report shares moved higher in pre-market trading after the carmaker filed papers with government officials in China seeking to expand production at its Shanghai gigafactory.
In overseas markets, Europe’s Stoxx 600 was marked 0.46% higher by mid-day trading in Frankfurt while the region-wide MSCI ex-Japan index closed out the session with a 0.42% gain. Japan’s Nikkei 225 was closed for its annual observance of the Emperor’s birthday.
