U.S. benchmark oil remains overbought and could continue to pullback towards an initial support zone between $107 and $112…said Tyler Richey, co-editor at Sevens Report Research. Click here to read the full article.
Ongoing concerns about price pressures and Fed policy expectations being dialed back slightly due to geopolitics are both strong tailwinds behind gold here…analysts at Sevens Report Research wrote. Click here to read the full article.
The main reason the European markets are down more than the U.S. is because Russia is a major trading partner with Europe…said Tom Essaye, founder of Sevens Report Research. Click here to read the full article.
The most important factors remain Fed tightening and economic growth…wrote Tom Essaye, a former Merrill Lynch trader who founded The Sevens Report newsletter. Click here to read the full article.
We just had 7% Q4 2021 GDP, and we had very low unemployment. So the Fed will raise rates. I think they probably…said Tom Essaye, founder of the Sevens Report. Click here to read/watch the interview.
While Russia/Ukraine will dominate near-term headlines, it’s not what’s going to determine the medium- and longer-term direction of this market…wrote Tom Essaye, a former Merrill Lynch trader who founded “The Sevens Report” newsletter. Click here to read the full article.
Bitcoin is much more of a momentum and risk-driven asset than it is the independent store of value that people want it to become, it’s not there yet…said Tom Essaye, a former Merrill Lynch trader who founded The Sevens Report newsletter. Click here to read the full article.
What’s in Today’s Report:
Futures are moderately lower (about 1%) as there were no major changes in Ukraine overnight and as markets digest Thursday’s rebound.
Russian troops have arrived at Kiev and there are reports of heavy fighting near the city, and many analysts expect Kiev to fall as soon as today or in the coming days.
There was no notable economic data overnight.
Today obviously markets will be focused on Ukraine headlines, but as long as there are no signs of the conflict spreading beyond Ukraine then it shouldn’t be too much of a direct impact on stocks. Outside of geo-politics, the key economic report today is the Core PCE Price Index (E: 0.5% m/m, 5.2% y/y) and if that is much stronger than expectations, it will weigh on futures as it will make the Fed more hawkish, and if it shows signs of inflation peaking, it could extend yesterday’s rally. We also get Durable Goods Orders (E: 0.5%), Consumer Sentiment (E: 61.7) and Pending Home Sales (E: 0.8%) but those numbers shouldn’t move markets unless they are large misses vs. expectations.
The situation between Russia and Ukraine remains very fluid and tensions remain high, so in the short term it will continue to be an obstacle to actions…Sevens Report said in a note. Click here to read the full article.
Traders continue to monitor the situation in Ukraine and look ahead to the Fed minutes release…Sevens Report’s Tom Essaye said in a note Wednesday morning. Click here to read the full article.
