- As negotiators from Russia and Ukraine prepare for a fresh round of discussions, US market futures rose along with European stocks on Monday. A worldwide bond sell-off intensified as markets expected the Federal Reserve to tighten policy to combat inflation.
- After last week's turbulent trading, futures on the S&P 500 and the Nasdaq 100 hinted that a degree of calmness may return to US markets. The 10-year Treasury yield tipped over 2% for the first time in three years, while the five-year yield surpassed 2% for the first time in three years. On Wednesday, the Fed is likely to launch a cycle of rate hikes, starting with a 25-basis-point hike. Before the Ukraine war, pricing pressures were already strong, and the isolation of resource-rich Russia disrupted commodities shipments.
- Following Volkswagen's confident forecast, the Stoxx Europe 600 index gained more than 1%, with carmakers leading the charge. As crude oil and natural gas prices plummeted, so did basic resources and energy stocks.
- Efforts at diplomacy are being scrutinized by investors as Russia continues its conflict in Ukraine, as well as statements from a US official that Moscow has requested military support from China. Rising government rates and a 12% decrease in global equities this year indicate concerns that dwindling stimulus and increased energy, food, and metals costs would stifle the global recovery.
- IEA Executive Director Birol: The Ukraine war could affect energy markets for months.
- EU diplomats are trying to conclude the sanctions package by today; EU mulling a Russian export ban on cars valued at over €50,000.
- India is mulling the Russian offer to sell oil, other commodities at discount due to sanctions; Currently working on a rupee-rouble trade settlement mechanism. - Two Indian Officials
- Iran: Nuclear discussions are taking a short break, not at an impasse. The return to nuclear discussions relies on the US making decisions.
