The American rating is trying to rebound before the stock market this Wednesday…
(Boursier.com) — The US stock market is trying to rebound ahead of the market on Wednesday, with the S&P 500 gaining 1.8%, the Dow Jones 1.6% and the Nasdaq 2.1%, despite persistent geopolitical uncertainty and the reciprocal sanctions which threaten to further increase inflation and weigh down global growth. The barrel of WTI crude consolidates barely 1% at $122.7. An ounce of gold returns 1% to $2,024. After four painful sessions, Wall Street therefore seems to want to move forward, on a technical leap fueled by purchases deemed cheap.
However, nothing has been resolved on the Russian-Ukrainian issue, and reciprocal sanctions are increasing between the West and Russia. The EU is considering a massive bond sale to fund energy and defence, which is a rare bright spot. The International Energy Agency will present a contingency oil plan next week, as crude prices have soared since Russia invaded Ukraine. IEA members agreed earlier this month to release 60 million barrels of oil reserves to world markets to meet the price hike. The United States for their part suspended Russian oil and gas imports as expected yesterday Tuesday in retaliation for Vladimir Putin’s offensive… The IEA intends to seek solutions to reduce oil demand in the coming months. to come.
The European Union has approved new sanctions targeting Russian leaders and oligarchs, as well as their family members. Britain has announced new sanctions against the Russian aviation sector.
Beijing, for its part, accuses NATO of having pushed Russia to the breaking point. The North Atlantic Treaty Organization has thus fueled tensions between Russia and Ukraine, said Chinese Foreign Ministry spokesman Zhao Lijian, urging the US to take the concerns of the China and to avoid harming its interests in managing the crisis in Ukraine and its ties with Russia. Washington had previously threatened reprisals against Chinese companies defying its sanctions against Russia… Putin, for his part, banned the export of certain raw materials and asked to list the countries that will be subject to these sanctions.
The major American companies are announcing one after the other the suspension of their operations with Russia, with very recently McDonald’s, Starbucks, Coca-Cola or PepsiCo. JP Morgan says its customers are under extreme pressure, with the ramifications of this crisis highly uncertain.
In the United States, as the Fed finds its task of monetary tightening significantly complicated by the additional push in inflation and the current economic shock, senior Biden administration officials are reportedly exploring “drastic measures” to try to protect the economy. the economy of the repercussions of the ban on Russian oil imports, believes the Washington Post.
A meeting is scheduled tomorrow Thursday in Turkey between the Russian and Ukrainian foreign ministers, Sergei Lavrov, and Dmytro Kuleba. Ukrainian President Zelensky said yesterday that he no longer insisted on Ukraine joining NATO, which signals an additional desire for appeasement. A compromise would also seem possible regarding the status of the separatist territories in eastern Ukraine, whose independence Putin had recognized.
On the economic front in the United States today, the Department of Labor’s JOLTS report on January job openings will be released at 4 p.m. (consensus 10.9 million). The US Department of Energy’s weekly report on domestic oil inventories for the week ending March 4 will be released at 4:30 p.m.
Joe Biden will sign an executive order today directing government agencies to assess the risks and benefits of creating a central bank digital dollar. The Treasury and Commerce departments, as well as other agencies (SEC, CFPA…), will have to prepare studies relating to cryptocurrencies on and in the future of the currency. The US government will assess the technological infrastructure necessary for the eventual issuance of a digital currency by the Fed. The US will proceed cautiously, however, given the dollar’s role as the world’s premier reserve currency.
Quarterly publications are becoming rarer on Wall Street, with Exelon, Campbell Soup, Korn Ferry and United Natural Foods all the same today.