The S&P 500 futures trade 45 points, or 1.1%, below fair value after a third round of ceasefire talks between Russia and Ukraine ended with no real progress. Oil prices are rebounding modestly while Treasuries trade little changed in front of key consumer inflation data.
After the talks, Russia confirmed a ban on exports of certain technology, auto, and agricultural products, among other items, until the end of 2022, in retaliation for Western sanctions on Moscow, according to Reuters . On a related note, the UK expanded sanctions against Russian oligarchs on Thursday.
Staying in Europe, the ECB recently left its key interest rates unchanged, as expected. The central bank said it’s on pace to conclude net purchases under the APP in the third quarter of this year, and it extended the Eurosystem repo facility for central banks (EUREP) until Jan. 2023 because of the Russia-Ukraine situation.
WTI crude futures, which dropped 12% yesterday, are back up 4.2%, or $4.55, to $113.21/bbl. The 2-yr yield is up one basis point to 1.68%, and the 10-yr yield is unchanged at 1.95%. The U.S. Dollar Index is up 0.2% to 98.18.
As for the data, Consumer Price Index for February will be released at 8:30 a.m. ET alongside the weekly Initial Claims (Briefing.com consensus 220,000) and Continuing Claims report. The Treasury Budget for February will be available at 2:00 p.m. ET.
Separately, shares of Amazon.com ( AMZN 2923.00, +137.42, +4.9%) are up 5% in pre-market action after the company announced a 20-for-1 stock split and a $10 billion share repurchase authorization. Trading is expected to begin on a split-adjusted basis on June 6, 2022.
In U.S. Corporate news:
- Amazon.com (AMZN 2923.00, +137.42): +4.9% after announcing a 20-for-1 stock split and a $10 billion share repurchase authorization. Trading is expected to begin on a split-adjusted basis on June 6, 2022.
- CrowdStrike (CRWD 190.17, +20.38): +12.0% after beating top and bottom-line estimates and issuing upside guidance for fiscal Q1 and FY23. CRWD was upgraded to Buy from Neutral at BTIG Research.
- Cisco (CSCO 54.80, -1.12): -2.0% after the stock was downgraded to Equal Weight from Overweight at Wells Fargo.
- Walt Disney (DIS 133.00, -0.65): -0.5% amid an analyst downgrade to Neutral from Overweight at Atlantic Equities.
- McDonald’s (MCD 220.48, -1.99): -0.9% amid an analyst downgrade to Neutral from Buy at Northcoast.
Reviewing overnight developments:
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Equity indices in the Asia-Pacific region ended Thursday on a higher note, taking the lead from Wednesday’s rally on Wall Street. Japan’s Nikkei: +3.9% Hong Kong’s Hang Seng: +1.3% China’s Shanghai Composite: +1.2% India’s Sensex: +1.5% South Korea’s Kospi: +2.2% Australia’s ASX All Ordinaries: +1.1%.
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In economic data:
- Japan’s February PPI 0.8% m/m (expected 0.6%; last 0.8%); 9.3% yr/yr (expected 8.7%; last 8.9%)
- Australia’s January Building Approvals -27.9% m/m, as expected (last 8.2%) and Pending House Approvals -17.5% m/m, as expected (last -1.8%)
- New Zealand’s February Electronic Card Retail Sales -7.8% m/m (last 3.0%); 1.1% yr/yr (last 5.7%)
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In news:
- Optimism built ahead of the meeting between foreign ministers from Russia and Ukraine but reports from this morning indicate that no progress was made.
- Japan’s Prime Minister Kishida said that a “widespread” effect is being seen from rising prices and that a coordinated government response is needed.
- Conservative challenger Yoon Suk-yeol won South Korea’s presidency.
- Australia is planning to increase defense spending.
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Major European indices trade on a lower not, giving back a portion of yesterday’s big gains. STOXX Europe 600: -1.8% Germany’s DAX: -2.7% U.K.'s FTSE 100: -1.2% France’s CAC 40: -2.3% Italy’s FTSE MIB: -3.0% Spain’s IBEX 35: -1.2%.
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In economic data:
- Italy’s January PPI 9.7% m/m (last 1.1%); 32.9% yr/yr (last 22.8%)
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In news:
- The meeting between foreign ministers from Russia and Ukraine did not yield concrete results, though Russian officials expressed willingness to continue talking.
- The Russian government has reportedly banned exports of technology, telecom, medical, auto, agricultural, and electrical equipment through the end of the year.
- Spain’s budget minister said that taxes on fuel will be cut if there is no action at the EU level.
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U.S. equity futures:
- S&P 500 Futures: -46 @ 4,232
- DJIA Futures: -336 @ 32,950
- Nasdaq 100 Futures: -216 @ 13,526
Overseas:
- Europe: DAX -2.7%, FTSE -1.2%, CAC -2.3%
- Asia: Nikkei +3.9%, Hang Seng +1.3%, Shanghai Composite +1.2%
Commodities:
- Crude Oil +4.67 @ 113.37
- Nat Gas +0.046 @ 4.572
- Gold +21.45 @ 2009.65
- Silver +0.304 @ 26.120
- Copper +0.0940 @ 4.6662