Wealth Daily 28 February 2022




WEALTH DAILY 2022-02-28
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US stocks gained last Fri, as traders try to figure out what hostilities in Ukraine mean for US financial markets. The Dow Jones Industrial Average gained 834.92 pts, or 2.51%, to close at 34,058.75. The S&P 500 index rose 2.24%. The tech-heavy Nasdaq Composite advanced 1.64%. The small-cap Russell 2000 gained 2.25%.


 However, US equity index futures are indicating that stocks will give up a chunk of Fri’s gains when regular trading on Wall Street starts later today (Mon). In early trading, Dow futures dropped about 450 points. S&P 500 futures fell 2.3% and Nasdaq 100 futures lost 2.7%


Gold is following a pattern opposite to equities. On Fri, the gold price was smashed. The most actively traded US gold futures (Apr) contracts settled down $37.80, or 2.0%, at US$1,887.60/oz. However, the Apr US gold future is back above $1,920/oz in early trade today.


Crude oil futures are also up sharply this morning. US WTI crude future rose more than 4% to around $95.60/bbl. The April Brent crude futures contract also rose 4% to near $102/bbl. On Fri, Brent and WTI futures closed lower by $1.15 and $1.22 per barrel, respectively.


Investors are also buying US Treasury notes this morning, pushing yields lower. The 10-year Treasury yield is down 6.6 basis points (bps) to 1.918%. On Fri, the 10-year yield was mostly unchanged at 1.9617%.


This morning’s early futures trade, with equities lower while gold, crude oil, and 10-year Treasury notes move higher, are signs that geopolitical tensions got worse over the weekend.

 The most alarming news of the weekend was the decision by Russian President Vladimir Putin to put his country’s nuclear deterrence forces on high alert.


 The most alarming news of the weekend was the decision by Russian President Vladimir Putin to put his country’s nuclear deterrence forces on high alert.


On the positive side, representatives for Ukraine and Russia have agreed to meet on the Ukraine-Belarus border for talks. However, there is not much optimism that the talks will lead to a cessation of hostilities.


 The euro has shed about 1% against the US dollar this morning after Western nations over the weekend unveiled harsher sanctions on Russia.