In Asian Equity Markets stocks steadied on Wednesday and demand for safe-havens waned a little as investors regarded Russian troop movements near Ukraine and initial Western sanctions as leaving room to avoid a war. MSCI’s broadest index of Asia-Pacific shares outside Japan rose 0.3 percent. Japan’s Nikkei was closed for the Emperor’s birthday holiday. At the midday break, the Shanghai Composite index was up 0.55 percent at 3,476.15 points. China’s blue-chip CSI300 index was up 0.57 percent. The S&P/ASX 200 index ended 0.6 percent higher at 7,205.70.
In Currency Markets the dollar was up on Wednesday morning in Asia. Investors look to get a handle on the latest developments in Ukraine. The euro was holding steady at $1.1325, sterling was pinned at $1.3593, and the safe haven yen and Swiss franc also took a breather having fell sharply as investors held out hopes a major war over Ukraine could be averted. One U.S. dollar was worth 115.03 yen. This left the dollar index little changed at 96.063. The New Zealand dollar jumped 0.52 percent after the Reserve Bank of New Zealand raised interest rates and said more tightening could be necessary.
In US Equity Markets main indexes fell on Tuesday, with the S&P 500 confirming a correction, as the Ukraine-Russia crisis kept investors on edge after Russian President Vladimir Putin recognized two breakaway regions in the country and ordered troops to the area. The Dow fell 1.42 percent, to 33,596.61, the S&P 500 lost 1.01 percent, to 4,304.76 and the Nasdaq Composite fell 1.23 percent, to 13,381.52. Shares of Home Depot Inc fell 8.9 percent after the home improvement chain reported a decline in gross profit margins for the holiday quarter due to a jump in transportation and labor costs.
In Commodities Markets oil rose to nearly $100 a barrel on Tuesday, reaching its highest level since 2014 after Moscow ordered troops into two breakaway regions in eastern Ukraine. Global benchmark Brent crude traded as high as $99.50 a barrel, before settling at $96.84 with 1.5 percent, gain. U.S. WTI crude also hit a seven-year high as it peaked at $96 a barrel, before ending at $92.35. Spot gold was down 0.2 percent at $1,902.71 per ounce, while spot silver was up 1.1 percent at $24.19 an ounce. Palladium fell 0.8 percent to $2,368.84 and Platinum rose 0.1 percent to $1,075.09.
In European Equity Markets stocks ended flat on Tuesday as gains in auto and travel shares were offset by geopolitical risks, with some Western countries imposing sanctions on Russia after it ordered troops into two breakaway regions of eastern Ukraine. The pan-European STOXX 600 index was flat, with automakers, travel stocks and technology shares the top gaining sub-indexes. Volkswagen AG rose 7.8 percent and Porsche SE rallied 11.3 percent following news the companies are in advanced discussions about a potential IPO of luxury carmaker Porsche AG.
In Bond Markets yields on U.S. Treasuries edged higher on Tuesday as U.S. President Joe Biden announced new sanctions on Russia in retaliation for Moscow recognizing two breakaway regions of Ukraine, but the bond market reaction was muted overall. The yield on 10-year U.S. Treasury notes rose 0.4 basis points to 1.934 percent, after an early morning price jump sent yields below 1.85 percent at one point. The breakeven rate on five-year U.S. Treasury Inflation-Protected Securities (TIPS) traded at 2.864 percent, after closing at 2.83 percent last Friday.