Daily markets: Russian-Ukrainian concerns joined by the renewal of the Covid in China


The big picture today

Asian markets closed today’s trade across the board except for Japan’s Nikkei which gained 0.58% and India’s Sensex which closed 1.68% higher. Taiwan’s TAIEX closed essentially unchanged, down 0.01%, while South Korea’s KOSPI fell 0.59%, China’s Shanghai Composite fell 2.60% and China’s Hang Seng fell 0.01%. Hong Kong fell 4.97%. By midday, European equity indices are up across the board and US futures are pointing to a strong market open later this morning.

We start the trade week with continued fighting between Russia and Ukraine, but another round of talks is scheduled for today. As we await this outcome, new supply chain concerns have emerged as mainland China faces another Covid-19 outbreak, with the manufacturing hub in Shenzhen having recorded more than 400 confirmed cases since late February. . These come on top of the headwinds already in place following Russia-related sanctions which have not only driven up the costs of key commodities, but also those of air freight following the flight restrictions. Earnings later this week from FedEx (FDX) will help frame this impact, but before that happens, the February PPI will be released ahead of the Fed’s latest monetary policy meeting, which is expected to result in a 25 basis point rate hike. .

Data download

International economy

Today is a light day in international economic releases with Germany, Finland and Sweden posting inflation figures for February. Finland posted a February YOY CPI of 4.50%, slightly beating January’s figure of 4.30%, while Sweden posted a February YOY CPI of 4.30%, beating January’s figure of 4.30% slightly. more than 4% the January figure of 3.70%. Germany’s February wholesale prices rose 16.6% year-on-year, down from 16.2% in the previous month, but below the forecast figure of 6.9%.

Domestical economy

No US economic release is due today, but we will be watching how consumer inflation expectations move in February versus the consensus of 5.8%. Investors are gearing up for the Fed meeting and interest rate decision later this week, and Fed futures are currently pricing in an 84% chance of a 25 basis point hike. Although there was talk of a possible 50 basis point hike earlier in the quarter based on generation-high inflation reports, the recent negative and near-zero GDP forecasts make measures aggressive moves by the Fed an unlikely scenario in our view.

Markets

With energy names providing the only positive returns, the S&P 500 lost 2.88% last week. Inflation concerns and the growing fallout from Russia’s invasion of Ukraine, coupled with renewed speculation about the Fed’s potential aggressiveness at this week’s rate-setting meeting, have put pressure on American markets. The Dow Jones Industrial Average fell 1.99%, the Nasdaq Composite fell 3.53% and the Russell 2000 lost 1.06%.

Stocks to Watch

Prior to the start of trading for stocks listed in the United States, F45 Training Holding (FXLV) and Lithium Americas (LAC) are supposed to publish their quarterly results.

Faced with soaring gasoline prices, Uber (UBER) announced that it will add a “temporary fuel surcharge” to fares across the country, which will be in effect “for the next 60 days”.

According to data released by the NPD Group, video game sales fell 6% year-over-year for a fourth consecutive month in February, to $4.384 billion. Investors in Microsoft (MSFT), Sony (SONY)and Nintendod (NTDOY) will note that hardware sales fell 27% to $295 million while the 4% drop in software/games sales to $3.91 billion will catch shareholders’ attention in Activision Blizzard (ATVI), Electronic Arts (EA)and Take-Two (TTWO).

It has been reported that Ford (F) announced that it will develop a second electric vehicle in Europe based on the modular development platform which it will license Volkswagen (VWAGY). This joint effort advances the two global automakers in their electrification plans and the numerous mandates calling for a relatively rapid reduction and eventual elimination of ICE (Internal Combustion Engine) vehicles in Europe.

IPOs

No IPO offerings are scheduled for this week. Readers interested in learning more about the timing of upcoming IPOs should visit Nasdaq’s Most Recent and Upcoming IPOs page.

After today’s market close

A number of companies are expected to release their quarterly results, including Calavo Growers (CVGW), Vail Resorts Inc (MTN), GitLab Inc (GTLB) and Finvolution Group (FINV). Those interested in learning more about which companies release their reports when head to the Nasdaq earnings calendar.

on the horizon

Monday March 14

  • Sweden: CPI – February
  • Finland: CPI – February

tuesday march 15

  • United Kingdom: Unemployment – ​​January
  • France: CPI – February
  • Euro zone: Industrial production – January
  • United States: Empire State Index – March
  • United States: PPI – February
  • United States: PPI (formerly Food & Energy) – February

Wednesday March 16

  • United States: FOMC meeting / Fed Funds objective
  • United States: retail sales – February
  • United States: Business Inventories – February
  • United States: NAHB Housing Market Index – March

Thursday March 17

  • Euro zone: CPI – February
  • United Kingdom: announcement of BoE interest rates
  • United States: Initial and Continuing Weekly Unemployment Claims
  • United States: housing starts – February
  • United States: Philadelphia Fed Index – March
  • United States: industrial production and capacity utilization – February
  • United States: EIA Weekly Natural Gas Inventories

Friday 18th March

  • Japan: CPI – February
  • Japan: policy rate
  • Euro zone: trade balance – January
  • United States: sales of existing homes – February
  • United States: leading indicators – February

Thought of the day

“Two categories of people lose money; those who are too weak to keep what they have; those who make money by trickery. They both lose in the end. ~ Henry Ford

Disclosures

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


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