Morning wrap (25.02.2022)

9:50 am 25 February 2022

  • US indices experienced a big turnaround yesterday after Joe Biden announced a new sanction package on Russia. S&P 500 gained 1.50%, Dow Jones moved 0.28% higher and Nasdaq rallied 3.35%. Russell 2000 added 2.67%

  • Stocks in Asia gained following a late turnaround on Wall Street. Nikkei gained almost 2%, Kospi moved 1% higher and S&P/ASX 200 finished 0.1% higher

  • DAX futures point to a big bullish price gap at the opening of today's cash session in Europe

  • Biden announced a sanction package that turned out to be much softer than feared. Package included sanctions on major Russian banks but stayed short of banning them from SWIFT system

  • Biden said that US forces will not be deployed in Ukraine

  • The West warned Russia that if aggression in the Ukraine continues to escalate, even more sanctions will be imposed

  • US House Speaker Pelosi said that she wants to provide Ukraine with defense weapons worth $600 million. France will offer €300 million in aid and military equipment to Ukraine

  • Russian military actions in Ukraine continue. Reports of explosions, missile and airborne attacks are surfacing in media but not as often as yesterday

  • According to Sky News report, anywhere between 30 and 60 thousand Russian soldiers are in Ukraine right now

  • Ukraine President Zelensky said that today will be the hardest day and that he believes Putin will us tanks to capture Kyiv

  • Ukrainian Foreign Minister confirmed that rockets have been already fired at Kyiv

  • Hacker collective Anonymous announced that it is now in cyber war with Russia and has taken down the website of Russian propaganda media Russia Today. Annonymous also warned that Russians plan large-scale bombings of Ukrainian capital today

  • Oil and natural gas trade higher

  • Precious metals also advance with gold regaining part of evening drop

  • AUD and NZD are the best performing major currencies while USD and EUR lag the most

S&P 500 (US500) experienced massive turnaround yesterday in the evening. Sanctions announced by the West turned out to be less severe than feared and it has led to some relief in the markets. US500 bounced off the 4,100 pts area and has climbed to 4,275 pts resistance zone today, marked with 38.2% retracement of recent downward impulse. Source: xStation5

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