Shares fight amid new Russia sanctions Push: Markets Wrap
Shares fight amid new Russia sanctions Push: Markets Wrap

Shares fight amid new Russia sanctions Push: Markets Wrap

(Bloomberg) – Shares in Europe and US index futures struggled as traction weighed on recent developments in the Ukraine war, with new pressure for tougher sanctions against Russia overshadowing the planned resumption of peace talks.

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The Stoxx Europe 600 index fluctuated, with banks and automakers leading in decline. The healthcare sector performed better as Roche Holding AG rose after the US Food and Drug Administration gave a priority review of their Covid-19 drug Roactemra. Futures on the S&P 500 and Nasdaq 100 were slightly changed.

The European Union on Monday condemned Russia for atrocities committed by its military in several Ukrainian cities, saying the bloc “as an urgent matter” will work on further sanctions against Moscow. It casts doubt on the outcome of video talks between Ukrainian and Russian negotiators that were to take place later today.

Government bonds plunged on the prospect of sharp interest rate hikes from the Federal Reserve to fight inflation. WTI crude oil rose to over $ 100 per barrel. barrel as traders weighed threats to demand from China’s Covid outbreak and are trying to leverage strategic reserves to increase supply and curb rising energy costs.

The Treasury yield curve flashes several warnings that economic growth will slow as the Fed raises interest rates to tame inflation, driven in part by commodities. The two-year US interest rate has exceeded 30 years for the first time since 2007 and joins inversions on other parts of the curve.

Bold minutes later this week will shape views on the odds of a half percentage point rise in interest rates in May and provide important details on how the central bank will shrink its balance sheet.

“It would not be surprising to see dividends rise further from here, and it is very difficult to know where they will land,” wrote Angela Ashton, founder and CEO of investment consulting firm Evergreen Consultants, in a note. “Markets are volatile and there is a good chance they will exceed.”

New York Fed President John Williams said Saturday that a “sequence of steps” could bring interest rates back to more normal levels. Mary Daly, president of the San Francisco Fed, said in an interview published Sunday that rising inflation and a tight labor market strengthen the argument for a May increase by half a point.

Chinese tech stocks in Hong Kong rose above 4% after Beijing sought to change a rule restricting offshore-listed companies from sharing sensitive financial data with foreign regulators. It could allow the United States full access to audits, reducing the risk of Chinese companies losing IPOs on Wall Street.

Key events to watch this week:

  • Reserve Bank of Australia interest rate decision, Tuesday

  • Fed Governor Lael Brainard speaks Tuesday

  • Federal Reserve minutes, Wednesday

  • China Caixin Composite and Service PMI, Wednesday

  • EIA report on crude oil inventory, Wednesday

  • Philadelphia Fed President Patrick Harker speaks Wednesday

  • St. Louis Feds James Bullard, Atlanta Feds Raphael Bostic, Chicago Feds Charles Evans speaks at separate events, Thursday

  • Reserve Bank of India interest rate decision, Friday

Some of the key movements in markets:

Equities

  • Stoxx Europe 600 was slightly changed from kl. 9:29 London time

  • Futures on the S&P 500 were slightly changed

  • Futures on the Nasdaq 100 were slightly changed

  • Futures on the Dow Jones Industrial Average fell 0.1 percent.

  • MSCI Asia Pacific Index rose 1 pct.

  • MSCI Emerging Markets Index rose 1.1 percent.

Currencies

  • The Bloomberg Dollar Spot Index was slightly changed

  • The euro was slightly changed to $ 1.1037

  • The Japanese yen had slightly changed to 122.55 per dollar

  • The offshore yuan was slightly changed to $ 6.3697 per dollar

  • The British pound was slightly changed to $ 1.3126

Bonds

  • The yield on 10-year government bonds was slightly changed by 2.38%

  • Germany’s 10-year interest rate fell six basis points to 0.50%

  • Britain’s 10-year interest rate fell four basis points to 1.57%

Raw materials

  • Brent oil rose 0.9% to $ 105.34 per barrel. barrel

  • Spot gold rose 0.3% to $ 1,930.58 per share. ounce

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