London, Monday, 14 March 2022
US Markets Summary
US Stocks in Negative Territory
Investors fretted on prolonged volatility in commodities prices amid security negotiations between the Russian and Ukrainian delegations as major US stock indices closed lower on Monday, failing to retain early gains.
The Dow lost 450 points to settle at 32,945, while the S&P 500 and Nasdaq both dropped 0.7 percent and 2%, respectively.
Higher interest rates were also a drag on optimism, as the US central bank is anticipated to boost its target fed funds rate by 25 basis points on Wednesday in an effort to cool inflation, which is already at multi-decade highs.
Apple (-2.7%), Intel (-3.1%), and NVIDIA (-3.5%) all ended the day in the red as a result of increasing borrowing rates and tighter Covid-19 regulations in China, which heightened fears of input shortages for tech companies.
European Markets Summary
Ceasefire Talks Boost European Stocks
On comments from both Ukrainian and Russian ministers that peace talks are progressing well despite Russian forces continuing their military operations, all major European stock indices jumped on Monday, with Germany's DAX gaining more than 2% and the pan-European Stoxx 600 gaining 1.2 percent.
In addition, oil markets extended their losses from the previous week, falling more than 6%, alleviating inflation concerns.
Ukraine announced that it had launched serious talks with Russia for a ceasefire, an immediate troop withdrawal, and security assurances.
In February, Germany's monthly wholesale price inflation fell 0.6 percentage points to 1.7 percent.
Meanwhile, investors are waiting for the US Federal Reserve and the Bank of England to announce interest rate decisions later this week.
(Written and edited by: The Decision Maker)