U.S. Stock Futures Brink Above – Sanctions on Russia

U.S. stock index futures were slightly higher at the start of trading on Wednesday. The S&P 500 index closed in the correction area on Tuesday, which fell more than 10% from its record high on January 3, amid a decision by the Russian president. This led to escalating tensions and fears of a full-scale invasion. Global stocks broke a four-day drop. Demand for haven assets dropped on Wednesday. Investors were waiting to see Putin’s next move. The Dow Jones went down 1.42%, to a total of 1.4%, at 482.57 points, and finally closed at 33,596.61. This was the lowest rate since June. The S&P 500 was reduced -1.01% at 4,304.76, or 1%, up 44.11 points. This is the lowest value since October.

The mood on the U.S. stock market became even tenser on Tuesday. After the Russian president on Monday ordered forces in the breakaway regions of eastern Ukraine; This raised fears that an invasion would take place. On Tuesday, the U.S. president said that the U.S. would impose sanctions on two Russian banks and the country’s sovereign debt, as he accused Moscow of launching an invasion of Ukraine. Earlier Monday, Biden issued an executive order banning Americans’ new investment, trade, and financing in breakaway regions where Russia sent troops.

Meanwhile, E.U. officials cited Putin’s latest moves. Including the recognition of the independence of the Russian separatist Donetsk and Luhansk regions; This is both a clear violation of international law. Germany took steps to suspend the Nord Stream 2 pipeline to transport natural gas from Russia to Western Europe.

U.S Stocks and Sanctions

According to experts, it is expected that the markets will remain volatile for the next few days. On Tuesday, the S&P 500 adjustment area closed, but Asian markets were mostly higher on Wednesday. After the last sales, traders added stocks at lower prices. European markets have also grown to an open level. U.S. futures also rose.

Wednesday’s U.S. Corporate Income Reporting Chart includes the Home Improvement Network with -3.64% LOW and -1.36% TJX. Following the closing call, the focus will be on the online auction on eBay, at -0.56%; On HTZ by -1.91%. Hang Seng increased by 0.60%; Shanghai Composite Index rose 0.93%. Due to the holidays, Japanese markets were closed.

Sterling rose on Wednesday, reflecting a stock market that recovered. Investors waited for the Russian president to respond to Western sanctions over his confrontation with Ukraine. The STOXX index rose more than 1% on Wednesday. Investors assessed Western sanctions against Moscow over the deployment of troops in the breakaway regions of eastern Ukraine. The sanctions raised hopes that war on Europe’s eastern flank could be avoided. Against the dollar, sterling stood at $1.3606 and increased 0.1%.

Conclusion

The British Prime Minister said on Monday that he would end all coronavirus restrictions in England, including mandatory self-isolation for people with COVID-19. Investors are also looking forward to the speeches of the Governor and Deputy Governor of the Bank of England and two other members of the BoE in Parliament.

It is worth noting that the BoE raised interest rates to 0.5% this month. Investors are looking forward to the BoE’s next scheduled meeting on March 17. Some of them suggest that prices will increase by 0.25%.