- Investors weighed the limited initial western sanctions against Russia amidst the Ukraine dispute as European markets surged alongside US futures on Wednesday.
- The Stoxx 600 Europe index and S&P 500 futures both rose by roughly 0.8%, while Nasdaq 100 contracts rose by more than 1%. The tone was upbeat compared to Tuesday, when the S&P 500 entered a technical correction after falling 10% from its January high.
- US President Joe Biden claimed that Russia has begun an invasion of Ukraine and proposed measures aimed at Russia's selling of sovereign debt abroad, its elites, and two banks. The restrictions, like those imposed by other US partners, did not go as far as sweeping penalties, though authorities cautioned that they may be escalated.
- After the yield curve flattened in the Wall Street session, treasuries continued to fall. Crude oil prices varied, but gold prices fell as safe-haven demand waned. The dollar slipped.
- BoE Gov. Bailey: Moderate rate hikes are likely in the coming months.
- BoE Gov. Bailey: Gas futures do not show prices falling for another 18 months.
- Nord Stream 2 contract has been canceled - Munich RE.
- BoE's Bailey: If there are second-round effects, we will need to respond with higher interest rates.
