Pre-opening in the United States: futures in the red following the warning of a recession in the bond market

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Wall Street futures opened stocks in the red before the bell on Tuesday as market participants continue to digest a warning of a bond market recession and the latest headlines from the Ukraine-Russia war.

As of 12:25 p.m. BST, Dow Jones futures were down 0.28%, while S&P 500 and Nasdaq-100 futures had indices opening at 0.27% and 0 respectively. .28%.

The Dow Jones closed up 103.61 points on Monday as Treasury yields remained inverted.

Treasury yields were again in focus ahead of Tuesday’s open, with rates on some short-term bonds continuing to trade above their longer-term counterparts despite a general rise in yields. The five-year rate climbed to 2.6%, while the 30-year rate was trading around 5.51%. However, the key part of the yield curve is not inverted, with the two-year yield trading slightly below its 10-year counterpart.

Traders also kept a close eye on developments in Eastern Europe, with the ongoing war between Ukraine and Russia and Ukrainian President Volodymyr Zelenskyy pledging to pursue war crimes allegations against Moscow. , stating that more than 300 civilians were killed and tortured in a suburb near the national capital of Kyiv.

Oil prices rose again early Tuesday, with West Texas Intermediate futures up 1.33% at $104.65 a barrel and Brent crude up 1.18% at $108.80.

The EU has revealed it is planning a mandatory phase-out of coal imports from Russia in response to reports of Russian atrocities in Ukraine, according to Bloomberg. The action would be in addition to measures already ready to be discussed by ambassadors to the EU. Details of the plan were being discussed, people familiar with the proposals told Bloomberg, but the European Commission was also expected to propose a ban on most Russian trucks and ships from entering the EU, the report said. . Russia supplies about half of Europe’s thermal coal used by power stations to produce electricity.

AvaTrade‘s Naeem Aslam said: “Geopolitical tensions don’t seem to be going away anytime soon. Recently, the United States has warned that Russia is likely to step up its military operation in Ukraine. Remember, Putin reduced the Russian military operation in Kyiv but then Russia attacked other parts of Ukraine What we have once again is confusion because on the one hand it looks like Russia is reducing its military presence.Yet, on the other hand, the United States maintains that Moscow is only reconsidering its objective after failing to capture kyiv.

“In addition to this, while the Russian military is accused of committing war crimes in Ukraine, the US Treasury has blocked dollar debt payments from Russian government accounts with US financial institutions. The Bureau Treasury Department’s Foreign Assets Control will no longer allow dollar payments from Russian government accounts at U.S. banking institutions.”

On the macro front, the February trade balance figures will be released at 1:30 p.m. BST, while S&PGlobal composite PMI for March and last month ISM The non-manufacturing PMI will follow at 1445 BST and 1500 BST, respectively.

No major corporate results were scheduled for release on Tuesday.

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