Morning Minutes

Stocks Rebound, Gold and Oil Sink as Ukraine Tensions Ease




Overnight reports that Russia has started to pull some troops back from the Ukrainian border and that more may move back once exercises are complete has sparked a sigh-of-relief rally in world markets this morning. In addition reports yesterday that Ukraine’s President had speculated on an invasion could start on Wednesday were quickly walked back as “ironic”, not literal, and related to his background as a comedian.

With political tensions easing a bit, some of the fears that recently gripped markets have eased as well. WTI and Brent Crude Oil are down 3.1% and 2.8% respectively, but still trading above $92.50/bbl. Energy has been particularly sensitive of late with Russia a major energy producer and Ukraine a key pipeline transit country. Gold is down 0.9% while Silver is down 2.2%.  

US Index futures are soaring today with NASDAQ futures up 2.0% and Dow futures up 1.1%. In Germany, which is particularly dependent on Russian energy supply, the Dax is up 1.8%, outperforming the FTSE’s 0.7% gain.

Another report of high US inflation has tempered enthusiasm slightly. US producer prices were more than expected but also stabilized (9.7% vs street 9.1% and previous 9.8%). Canada housing starts slowed again (230K vs street 245K and previous 238K) suggesting that the prospect of rising interest rates has dampened housing demand.

Restaurant Brands, parent of Tim Hortons and Burger King beat the street on earnings this morning ($0.74 vs street $0.70) and raised its dividend slightly. Hotelier Marriott posted positive results as well ($1.30 vs street $0.99).

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Colin Cieszynski, Chief Market Strategist

Colin Cieszynski, CFA, CMT
Chief Market Strategist
+1 (647) 282-4428

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