March 11, 2022
Good morning,
Markets are looking up by about one percent this morning. Russian President Putin cited “positive movement” in talks with Ukraine, hours after saying he would bring in fighters from the Middle East. Despite extreme skepticism U.S equity futures jumped along with European stocks after the report of Putin’s comments, while crude oil futures in New York pared gains and gold extended a decline.
The Putin comments appear to be the main driver of price action this morning, though all they have really managed to do is push equities back into familiar territory. Currently the price of the S&P 500 Index (via the Futures market) is less than half a percent below last week’s close, which isn’t a lot of movement for the enormous volatility seen over the last few days. European stocks look to close the week in positive territory.
Let’s get in a few more days of less volatile, maybe mildly calmer markets, and then assess the damage done to the longer term picture for markets. I am skeptical of a big relief rally mending the damage done to the technical picture of the market now. We’ll see.
Have a good weekend.
Be well,
Mike