The hope of a peace agreement between Russia and Ukraine triggers global equity buys. Dow Jones futures are up nearly 400 points to 33,817; futures on the S&P 500 are up 1.30% to 4.309, futures on the Nasdaq are up 1.88% to 13.703.
In a speech to the nation yesterday, Ukrainian President Volodymyr Zelensky said a ceasefire agreement “seems more realistic”, while Russian Foreign Minister Sergey Lavrov told the BBC that there is “some hope to reach a compromise “.
Russian media confirmed the same hope from Kremlin sources.
Among the best stocks in the S&P 500 index, Micron Technology, Starbucks and Boeing stand out in the premarket.
While the negotiations between Moscow and Kiev are still ongoing, we also look at the rally of the Hong Kong and Shanghai stock exchanges, sparked by the statements of the Chinese Vice Premier Liu He, who has promised measures to support China’s economy and policies too. in support of the capital market.
The spotlight today will all be on the Fed rate announcement, which will arrive at 7pm Italian time, followed by a briefing in which President Jerome Powell will speak.
Great is the trepidation for the dot-plot and the updated forecasts on the trend of GDP and inflation made in the USA, in a global economic context that has suddenly changed face with the invasion of Ukraine by Vladimir Putin’s Russia. Economists predict that the Fed will raise fed funds rates today for the first time since 2018, from the current range of zero to 0.25%, by 1/4 percentage point. From the dot plot, according to the strategists, the intention to raise rates by another 5/6 times during this year could emerge. “I think the Fed will be a little more hawkish than the markets predict, a factor that will be difficult to digest, especially on the part of fixed income markets,” Jefferies chief market strategist David Zervos commented to CNBC. it could digest (the grip) a little better, but it will be a difficult toad to swallow. ”
In yesterday’s session, the Dow Jones Industrial Average rose 599.10 points (+ 1.82%), to 33,544.34 points; the S&P 500 index closed up 2.14% to 4,262.45 while the Nasdaq Composite jumped 2.92% to 12,948.62. US 10-year Treasury rates are up 2.179%.