We must acknowledge the challenges ahead, and be ready with a plan to insulate ourselves from volatility and protect portfolios…wrote Tom Essaye, founder of Sevens Report Research. Click here to read the full article.
Implying the Russia/Ukraine war wasn’t materially slowing growth…wrote Tom Essaye, founder of Sevens Report Research. Click here to read the full article.
The market has, to a degree, called the Fed’s bluff on rate hike plans as rate hike expectations were dialed back in the immediate wake of the dot plot release and economic projections, but the Fed is indeed tightening policy and regardless of the pace of the trend, yields are going higher in the months and quarters ahead, said Tom Essaye, founder of Sevens Report Research. Click here to read the full article.
What’s in Today’s Report:
Futures are slightly lower following a generally quiet weekend as investors digest last week’s gains.
The Russia/Ukraine war continued with no notable progress towards a cease-fire over the weekend and hope for a near-term peace is fading.
Economically, the only notable report was German PPI, which encouragingly missed expectations, rising 1.4% m/m vs. (E) 1.7% m/m.
Today there are no economic reports and just one Fed speaker, Bostic at 8:00 a.m. ET, and he shouldn’t move markets. So, focus will remain on Russia/Ukraine, and any hints of progress towards a ceasefire will help extend the rally, while any additional escalation will be a headwind on stocks.
What’s in Today’s Report:
Stock futures came for sale late yesterday following negative Russia-Ukraine headlines as traders continue to digest the sizeable post-Fed rally.
After the Wall Street close yesterday, the U.S. Defense Intelligence Agency released a report that Russia is increasingly likely to threaten nuclear options as the war with Ukraine drags on which weighed on risk assets broadly.
Today, there is one economic report: Existing Home Sales (E: 6.170M) but it shouldn’t move markets and two Fed officials are scheduled to speak: Barkin (10:00 a.m. ET) and Evans (2:00 p.m. ET) but neither are voting members of the FOMC.
Today is quadruple witching options expiration so expect big volumes and some technical trading in equity markets however geopolitical developments regarding Russia and Ukraine will still be able to influence price action as we close out another volatile trading week.
Investors took profits on Friday while they could ahead of the weekend…explained Tom Essaye, founder of Sevens Report Research. Click here to read the full article.
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.
