Morning Market Report
In comes Janet!!!!! and the hit job on metals as expected >>129657
Equities Erase Losses as Treasury Yields Rise: Markets Wrap
U.S. and U.K. prepare bans on Russian energy imports. Oil extends gains, taking WTI past $125; euro strengthens >>129687
U.S. stocks rebounded as investors weighed the impact of U.S. plans to impose a ban on imports of Russian energy. Treasury yields rose and crude oil climbed.
President Joe Biden said the U.S. will ban imports of Russian fossil fuels including oil. The move will be matched by the U.K., which will announce a ban on oil imports, though it will continue to allow natural gas and coal from the country. The decision could exacerbate crude supply crunches that have sent oil surging past $125 a barrel in New York. Other commodities markets remained under stress from the fallout from the war. Nickel was halted after a 250% two-day gain, wheat hit an all-time high in Chicago and gold surged past $2,000 an ounce.
Risk assets have been gripped by volatility since the war broke out almost two weeks ago. U.S. stocks closed Monday in a correction and futures plunged as much as 1.5% overnight before a Bloomberg report that Europe was considering more stimulus jolted them higher. The decision on Russia’s oil has sapped the market of optimism, on concern that runaway inflation will hurt global economic growth.
“I don’t think the market’s ignoring anything at the moment, to be honest with you,” JJ Kinahan, chief market strategist at TD Ameritrade, said by phone. “In fact, everything is hyper-sensitive as to what may happen. It’s so fluid and we will see what happens. It’s really tough to predict day-to-day.”
The S&P 500 added 0.3%, after dropping as much as 1%, signaling much of Biden’s announcement was already priced in the market. The tech-heavy Nasdaq 100 also pared losses to trade 0.3% higher. The 10-year Treasury held losses, with the yield earlier jumping along with its German counterpart following the report that the EU is considering joint bond sales to counter the fallout from the war.
One Million Options Contracts on Biggest Russia ETF in Limbo
The suspension of trading in the world’s largest Russia ETF has left the fate of options worth hundreds of millions of dollars hanging.
Cboe Global Markets Inc. halted trading of shares and options in the VanEck Russia ETF (ticker RSX) after the market close Friday as the fallout of the Russian invasion of Ukraine made the fund’s underlying securities practically impossible to trade.
https://www.bloomberg.com/news/articles/2022-03-08/one-million-options-contracts-on-biggest-russia-etf-are-in-limbo
FIFY
Impossible to trade cause they don't want roubles
Wheat prices hit 14-year high, food shortage fears rise
https://www.foxbusiness.com/economy/wheat-prices-food-shortage-fears
https://finance.yahoo.com/quote/%5EDJI
https://www.kitco.com/charts/livegold.html
https://www.kitco.com/charts/livesilver.html
https://www.bloomberg.com/news/articles/2022-03-07/stock-plunge-commodity-surge-set-to-weigh-on-asia-markets-wrap