Stocks Steady as Russian Rally Drives Havens: Markets Roundup

Markets were quiet on Wednesday with most investors sidelined ahead of another expected rate hike by the Federal Reserve. Treasuries, gold and the dollar rose on safe-haven flows after Russian President Vladimir Putin escalated his war against Ukraine.

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(Bloomberg) — Markets were quiet Wednesday with most investors on the sidelines ahead of another expected rate hike by the Federal Reserve. Treasuries, gold and the dollar rose on safe-haven flows after Russian President Vladimir Putin escalated his war against Ukraine.

Announcement 2

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European stocks posted a small gain after recouping an early loss. Contracts in the S&P 500 were flat after the core gauge fell 1% on Tuesday in the run-up to the Fed meeting. Officials are widely expected to raise rates by 75 basis points for the third straight time in their eagerness to rein in price pressures, according to the vast majority of analysts surveyed by Bloomberg. Only two project a movement of 100 basis points.

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The escalation of the Russian war is likely to reverberate across markets, deepening the energy and food crisis, according to Charu Chanana, market strategist at Saxo Capital Markets Pte. in Singapore. “A herd in havens like the US dollar is an expected result, as well as a further loss for the euro,” he said on Wednesday. “Oil, wheat and gold could see some potential gains.”

Announcement 3

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Ten-year Treasury yields fell four points to 3.52%. German debt with a similar date also fell. The euro fell and oil jumped as investors reacted to Putin’s announcement of a “partial mobilization” when he promised to annex the territories his forces have already occupied, vowing to use any means necessary to defend Russia.

A gauge of the dollar traded near a record high amid market jitters, while Bitcoin fell below $19,000. The offshore yuan fell to the lowest level against the dollar since mid-2020, even after the People’s Bank of China set the daily benchmark rate for the stronger-than-expected currency for a 20th day.

Key events this week:

  • Federal Reserve decision, followed by a press conference with Chairman Jerome Powell, on Wednesday
  • The CEOs of the big banks testify before the US Congress in a pair of hearings on Wednesday and Thursday.
  • US Existing Home Sales, Wednesday
  • EIA Crude Oil Inventory Report, Wednesday
  • Bank of Japan monetary policy decision, Thursday
  • The Bank of England interest rate decision, Thursday
  • US Conference Board Leading Index, Initial Jobless Claims, Thursday

Announcement 4

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Some of the main movements in the markets:

Stocks

  • The Stoxx Europe 600 was up 0.3% at 9:23am London time
  • S&P 500 futures rose 0.1%
  • Nasdaq 100 futures little changed
  • Dow Jones Industrial Average futures rose 0.1%
  • MSCI Asia Pacific Index fell 1.4%
  • MSCI Emerging Markets Index fell 1.1%

coins

  • The Bloomberg Dollar Spot Index rose 0.4%
  • The euro fell 0.6% to $0.9908
  • The Japanese yen was little changed at 143.72 per dollar
  • The offshore yuan fell 0.4% to 7.0614 per dollar
  • Sterling fell 0.4% to $1.1338.

Captivity

  • The 10-year Treasury bond yield fell four basis points to 3.52%
  • Germany’s 10-year yield fell eight basis points to 1.84%
  • UK 10-year bond yields fell six basis points to 3.23%

raw Materials

  • Brent crude rose 2.7% to $93.09 a barrel.
  • Spot gold rose 0.4% to $1,670.76 an ounce.

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