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Zelensky: Russia can’t win Ukraine with bombs, strikes and rockets

  
  Analysis
  • Almost 6,000 Russians have been killed in 6 days of war

If you’re going to want to poke the bear, you’d better be ready for when it wakes up. Even with the bloodshed, there’s still a sense that hostilities can be ramped up much further – especially on Russia’s part. They may be holding back because of how it may be perceived globally but we’ll see if and how Putin’s appetite will change in the days ahead.

US major indices “take it on the chin” as oil and commodities run to the upside

  
Analysis, US Market

The major US indices are all closing sharply lower with the declines of -1.5% or more.

Higher commodity prices pose a risk for higher inflation going forward. Continue tension in Ukraine, and tumbling rates all helped to contribute to a declining environment in US equities.

  • CEUDE prices trading above $100 for the first time more than seven years
  • Corn and wheat  futures FuturesFutures or a futures contract represents a legal agreement to buy or sell a security or asset at a predetermined price at a specified time …Read this Term traded up-limit as they continued their run to the upside on risk of supply constraints. Russia and Ukraine supply 29% of the export market in wheat.
  • The US yields fell sharply with the tenure yield now down -12.5 basis points on the day and at its lowest level since January 5
  • S&P index closed nearly 11% below its all-time high
  • NASDAQ index is back to down 17% from its all-time high
  • if there is good news, the Dow was down 785 points at its low and is closing down around 600 points (not sure that’s that great though)

Financials were the hardest hit on the tumble in rates. That sector felt -3.7% on the day. Energy was the only sector which moved higher (up 1.0%). Technology fell by -2.0%. Semi conductors were hit hard with a decline of -3.15%.

The final numbers are showing:

  • Dow industrial average fell -597.65 points or -1.76% at 33294.94
  • S&P index felt -67.68 points or -1.55% at 4306.27
  • NASDAQ index fell -218.93 points or -1.59% at 13532.47
  • Russell 2000 felt -39.58 points or -1.93% at 2008.50

Nord Stream 2 owner reportedly considers insolvency after pipeline halt, sanctions

  
  Analysis

For some context, North Stream 2 AG is registered in Switzerland and owned by Russian gas giant Gazprom. The firm is said to be considering filing for insolvency, as it attempts to settle claims ahead of a US sanction deadline for other entities to stop dealings with it.

That just adds more drama to the saga after the pipeline did not even begin operating after the pending certification in Germany was put on hold as a result of the whole Russia-Ukraine situation.

US major indices close mixed. NASDAQ higher for the third day in a row

  
Analysis, US Market
  • The major US indices are closing mixed. The NASDAQ index close higher for the third consecutive day as did the Russell 2000. The S&P and Dow snapped their two day up streak.

A look at the close is showing:

  • Dow industrial average minus 168.72 points or -0.50% at 33890.02
  • S&P index -10.87 points or -0.25% at 4373.77
  •  NASDAQ  index +56.78 points or 0.41% at 1375.41
  • Russell 2000 up 7.156 points or 0.35% at 2048.08
  • Cathie Wood’s ARK Innovation rose $2.65 or 3.91% to $70.47. That index is up 22.4% from the low reached on Thursday (low was at $57.55 and closed today at $70.47 – up $12.92). That is the good news. The not so good news is the index fell from $125.86 to $55.50 ($-70.36)
  • Tesla rose 7.48% and it is up 24.38% from Thursday’s low. That low reached $700 before bouncing up and closing today at $870.43.
  • Crowdstrike Holdings rose $13.46 or 7.41% to $195.21. That cybersecurity stock rose along with Palo Alto Networks (+4.3%) and Fortinet (+6.02%) also in the cybersecurity space.

The lowlights today included the financials:

  • Deutsche Bank, -7.51%
  • Citigroup, -4.49%
  • JPMorgan -4.14%
  • Morgan Stanley, -4.05%
  • Goldman Sachs, -2.53%

Airlines were also lower:

  • Delta Airlines, =3.90%
  • United Airlines, -3.16%
  • Southwest Airlines, -2.99%

Nasdaq, NYSE have temporarily halted stocks of Russian based companies

  
  Analysis

The  Nasdaq  and NYSE have announced they will temporarily halt stock trading on Russian based companies listed on their exchanges. They site regulatory concerns following sanction on Russia.

  • India’s State Bank of India (SBI.NS), has stopped processing transactions involving sanctioned Russian entities. Tells it’s clients, it will not process any transaction with a sanctioned Russian entity irrespective of the currency.

On a company specific level, Shell intends to exit equity partnership with Russian Gazprom entities:

  • To exit joint venture with Gazprom and related entities, including its 27.5% stake in Sakhalin-ii-liquefied natgas facility
  • Intends to exit Nordstream 2 project

Their decision follows a similar one from BP and Total to exit their stakes in Russian owned oil/gas businesses.

The pressure continues from government and corporate entities alike.

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