Breaking News
Get Actionable Insights with InvestingPro+: Start 7 Day FREE Trial Register here
Investing Pro 0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

Marketmind: A new kind of curtain

Economy Mar 09, 2022 03:05AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters. FILE PHOTO: People rest at a McDonald's restaurant in central Moscow, Russia, June 30, 2016. REUTERS/Maxim Zmeyev

A look at the day ahead in markets from Dhara Ranasinghe.

When McDonald's (NYSE:MCD) opened in central Moscow's Pushkin Square in 1990, it became a symbol of thriving American capitalism as the Soviet Union fell.

Now, news that McDonald's, together with PepsiCo (NASDAQ:PEP), Coca-Cola (NYSE:KO) and Starbucks (NASDAQ:SBUX), have stopped sales in Russia, is a further sign of a new dividing line being drawn between East and West following Russia's invasion of Ukraine.

Russia, meanwhile, warned on Wednesday it was working on a broad response to sanctions that would be swift and felt in the West's most sensitive areas.

For some, the move by companies such as McDonald's is overdue - after all a slew of major corporations had already cut ties with Russia as the West ramped up sanctions. Others argue such action can harm public opinion among Russians, suffering from the economic pain unleashed by the conflict.

After days of selling, some respite appears on the cards for world stock markets. European and U.S. stock futures are trading in positive territory and MSCI's world stock index is steady near one-year lows.

Perhaps, the bad news is priced in for now?

Oil prices remain one to watch, having risen again following a new U.S. ban on Russian oil. Britain also announced it will phase out imports of Russian oil and oil products by end-2022.

Brent crude is above $131 a barrel, taking its gains since the Feb 24 Russian invasion of Ukraine to almost 35%.

That surge is already being felt by consumers via rocketing fuel prices at the pump.

Prices for aluminium a key Russian export, jumped 5% on Wednesday, a day after the London Metal Exchange suspended nickel trading following a doubling of prices that was blamed on short-covering by a top producer.

As one analyst noted last week (before the risk of Western bans on Russian energy rose), "this is going to hurt."

Oil and inflation expectations https://fingfx.thomsonreuters.com/gfx/mkt/klpykblbrpg/oil0903.PNG

Key developments that should provide more direction to markets on Wednesday:

- China Feb factory inflation eases, spotlight on global commodities

- Fitch cuts Russia's rating further into junk, says debt default imminent

- South Korea holds Presidential election.

- German budget

- U.S. JOLTS job openings

- U.S. 10-year note auction

Marketmind: A new kind of curtain
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email