Good morning all! Back to it. :) Elli. Markets Overnight US markets rallied overnight after tensions eased a little in the Ukraine after Russias president said he saw no need to use military force in Crimea for now/ He said the use of force in the Ukraine would be a choice of last resort and that sanctions being considered against Moscow by the West would be counter-productive. US markets reversed on the comments, with the Dow closing up more than 200 points or 1.4%, and the S&P closing up 1.5% and the Nasdaq closing up 1.75%. Investors moved back into stocks, unwinding safe-havens such as the yen and gold. Oil fell on the news after being up on supply concerns. The US dollar and Treasury prices also fell. European markets also closed higher after the comments from Russia, bouncing back after yesterdays declines. Blue chip stocks with significant exposure to Russia also bounced back on the news. Overshadowed by the Ukraine action is the upcoming ECB meeting on Thursday. Banking stocks have rallied on speculation that the ECB will loosen lending conditions on Thursday, as inflation in the euro zone was way below the ECBs goal, according to Mario Draghi. Asian markets remained subdued yesterday prior to Putins remarks overnight as investors remained concerned at that time over issues in the Ukraine. It followed on from Putin declaring Monday that he had the right to invade the neighboring country, and the US response in suspending military engagements with Russia. US markets had closed Monday all in the red, with the Dow facing its biggest one-day losses in a month despite the better economic data released from the US that night. Uncertainty also remains with the governments annual meeting - Chinas National Peoples Congress - to be held today. Yesterday Shanghai finished 0.2% lower as investors were hesitant to get into the market with the expectation that supportive policies may be released from the meeting today, not to mention the issues in the Ukraine. Tokyo finished up half a percent as the weakness on the yen helped the index rise into positive territory with exporters enjoying the moves. Autos also received a boost from the US auto numbers. An interesting fact - so far this year the Nikkei is down almost 10% after jumping more than 57% last year. It is one of the worst performers in the developed world so far this year. Sydney also gained yesterday after the previous days biggest decline in a month. The current account deficit came in better than expected helping sentiment along with better building approvals data. The RBA kept rates on hold, as expected, citing a revival in housing and consumption for its decision to keep rates steady. Banking stocks rose on the news, however Qantas continues to be in the spotlight after the government loosened restrictions on foreign ownership of the airline. Korean markets extended Mondays losses remaining lower on the Ukraine tension and possibly from news from Chinas meeting today, and South Koreas president has nominated a former senior deputy chief of the central bank to be its next governor, with the mission of ensuring price stability in Asias fourth-largest economy (CNBC). Major news today - AUD, GBP, USD and CAD.
Posted on: Tue, 04 Mar 2014 22:54:34 +0000
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