- On Tuesday, global markets were jolted by a new wave of volatility as the war in Ukraine escalated amid growing sanctions against Russia. Equities in the United States plummeted along with equities in Europe, while bonds rose and oil prices soared.
- Futures on the s&p 500 and Nasdaq 100 dropped, showing a weak u.s. open. Treasury rates fell for the second day in a row to their lowest level since January, but the dollar remained stable.
- Oil prices climbed as traders weighed the possibility of emergency stockpile releases against concerns over disruptions to Russia's energy exports.
- Germany's 10-year yield fell below zero percent for the first time since January, as did bonds throughout Europe. As a result of the economic damage from Russia's invasion of Ukraine, traders believe the European Central Bank will delay hiking interest rates until next year.
- As traders analyzed the impact of sanctions, carmakers and travel stocks led a drop of more than 1.5% in the Stoxx Europe 600 index. The only sector in the green was basic resources, as commodity prices continued to rise. Although favorable earnings boosted Bayer's stock, the company cautioned that the Ukraine crisis might jeopardize its future prospects.
- Hopes for a quick diplomatic settlement over Ukraine dimmed when Russia pledged to keep attacking until its objectives are reached, and troops were observed marching in a massive convoy toward Kiev, Ukraine's capital. The threat by Putin to use nuclear weapons, according to Italian Prime Minister Draghi, necessitates a "quick, firm, and united response." Meanwhile, Moscow introduced capital controls as part of Putin's response to new sanctions that are wreaking havoc on the economy.
- Bets on a half-point FED rate hike in March are being erased by traders.
- Russian PM Mishustin: The country's economic transformation away from reliance on natural resources should be accelerated.
- OPEC reduces forecast for 2022 surplus to 1.1 million BPD; Forecasts to be re-evaluated at the technical meeting today.
- Traders push back bets on ECB 25 BPS rate hike to 2023 from December.
- Eurozone Money Markets now expect 25 basis points of ECB rate rises by the end of the year, down from 30 basis points yesterday - ECB Watch
