Strategas President Jason Desina Trenert examines how the Russian invasion of Ukraine will affect markets and how the Federal Reserve can tame inflation.
we Stores sank on Monday as investors weighed the latest developments regarding Russia’s invasion of Ukraine in exchange for the United States’ expansion of sanctions against Russia’s central bank by Freezing all owned assets by the Americans.
The Dow Jones Industrial Average was down over 450 points, or 1.4%, while the S&P 500 was down 1.1% and the Nasdaq Composite was down 0.6%.
Russia and Ukraine: live updates
| tape | protection | the last | they change | they change % |
|---|---|---|---|---|
| Me: DJI | Dow Jones averages | 33688.11 | -370.64 | -1.09% |
| SP500 | Standard & Poor’s 500 | 4350.7 | -33.95 | -0.77% |
| I: COMP | Nasdaq Composite Index | 13661.82393 | -32.80 | -0.24% |
Inflation and monetary policy errors pose a threat to the US economy: NAB
Early Monday, the ruble fell more than 30% after the move to block Russian banks from the SWIFT payments system. The sanctions include restrictions designed to impede the Russian Central Bank’s access to more than $600 billion in reserves and impede its ability to prop up the ruble. In the fray, the Russian Central Bank raised its key interest rate to 20% from 9.5% in a desperate attempt to prop up the falling ruble and prevent a scramble for banks.
Russia raises key rate to 20%, tells companies to sell foreign currency
Russian exchange-traded funds have come under pressure.
| tape | protection | the last | they change | they change % |
|---|---|---|---|---|
| RUSL | Direxion ETF Trusts Russia Daily | 9.68 | -1.65 | -14.56% |
| RSX | RUSSIA VANECK VECTORS BOX | 11.46 | -4.19 | -26.76% |
| eros | ISHARES INC MSCI RUSSIA CAPPED ETF | 20.31 | -4.67 | -18.70% |
Oil prices rose on Monday, with the benchmark US crude price nearing $96 a barrel in electronic trading on the New York Mercantile Exchange. Brent crude is hovering at $98 a barrel.
| tape | protection | the last | they change | they change % |
|---|---|---|---|---|
| USO | United States Petroleum Fund LP | 67.20 | +1.40 | + 2.13% |
| BNO | United STS BRENT OIL FD LP UNIT | 26.94 | +0.68 | + 2.59% |
Gold rose above $1900 as investors moved to safer assets amid volatility hitting US stocks.
| tape | protection | the last | they change | they change % |
|---|---|---|---|---|
| GLD | SPDR Gold Stock Confidence – EUR ACC | 178.25 | +1.69 | + 0.96% |
In stocks to watch, BP confirmed Sunday that it will divest its stake in Russian energy company Rosneft — the latest private severing of ties with Russia as the global superpower invades neighboring Ukraine. BP, which has held a 19.75% stake in Rosneft since 2013, also said its chief executive, Bernard Looney, would resign from the Russian company’s board, effective immediately. Bob Dudley, the former chief executive of BP, will also resign from Rosneft’s board of directors.
| tape | protection | the last | they change | they change % |
|---|---|---|---|---|
| BP | BP PLC | 28.54 | -2.19 | -7.13% |
Defense stocks rose like Germany announced plans To increase military spending to 2% of output.
| tape | protection | the last | they change | they change % |
|---|---|---|---|---|
| LMT | Lockheed Martin Corporation. | 424.02 | +17.33 | + 4.26% |
| No objection certificate | Northrop Grumman Corp. | 427.52 | +17.80 | + 4.34% |
| RTX | Raytheon Technologies Corporation. | 100.2819 | +2.13 | + 2.17% |
In earnings news on Monday, Lordstown Motors, Nielsen, Party City and Tigna before the market open and SmileDirectClub, Workday and Zoom Video Communications after the bell.
| tape | protection | the last | they change | they change % |
|---|---|---|---|---|
| ride | Lordstown Motors | 2.71 | -0.51 | -15.73% |
| NLSN | NIELSEN HOLDINGS PLC | 17.20 | -0.37 | -2.11% |
| PRTY | Terminal City Holdco Inc. | 4.56 | +0.16 | + 3.64% |
| TGNA | TEGNA INC. | 22.81 | +0.11 | + 0.48% |
| SDC | SMILEDIRECTCLUB INC. | 2.22 | +0.01 | + 0.45% |
| day | WORKDAY INC. | 230.08 | +4.85 | + 2.15% |
| ZM | ZOOM VIDEO COMMUNICATIONS INC. | 126.86 | +1.54 | + 1.23% |
The German company E.ON rejects HALTING NORD STREAM 1 PIPELINE – PAPER
In cryptocurrencies, Bitcoin is hovering around the $38,000 level.
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