What’s in Today’s Report:
- Why the SWIFT Ban and Other Sanctions Matter
- Update on Value/Growth Rotation
It is a moderately risk-off morning with stock futures down just over 0.5% while Brent crude prices have jumped back above $100/barrel and the 10-Yr Treasury yields have dipped below 1.75% amid the ongoing conflict in Ukraine.
Western allies added more sanctions on Russian financial institutions overnight while a 40-mile long Russian military convoy continued to make progress towards Kyiv however high-level diplomatic talks between Russia and Ukraine are expected to resume today.
Looking at the calendar, there are two economic reports to watch today: ISM Manufacturing Index (E: 58.0) and Construction Spending (E: -0.2%) as well as one Fed speaker: Bostic (2:00 p.m. ET).
But, the market will remain largely focused on the Russia/Ukraine conflict and whether or not there is any progress in the ongoing diplomatic talks. As has been the case since last week, any deterioration in the conflict will result in further risk-off money flows across asset classes while any sense of de-escalation could support a continued relief rally.