From oil and gold to stocks and currencies, global markets were a picture of relative calm Monday in the wake of a geopolitical shock that challenged Vladimir Putin’s rule in Russia. Oil was steady after its near 4% slide last week, US and European equity futures ticked higher and Asian shares were mixed as bourses in mainland China opened after a long weekend amid concern over the nation’s economic recovery. A gauge of dollar strength declined 0.1% while most major currencies traded within narrow ranges versus the greenback. Gold rose slightly, with little sign of aggressive buying for its haven qualities. While events in Russia had the potential to spur investors into selling riskier assets, initial moves were modest and reflected the impact of a deal that was brokered to halt the Wagner mercenary group’s advance toward Moscow. The agreement includes dropping criminal mutiny charges against Yevgeny Prigozhin and his fighters. The Russian mutiny could bring risk aversion in focus among investors, according to strategists at Saxo Capital Markets, including Charu Chanana. While the situation has been deescalated for now, it will be hard for status quo to return, they wrote in a note. Gas traders were bracing for more market turbulence given the risks to supply from Russia, with European gas already seeing the highest volatility since the invasion of Ukraine. Shares of Russian aluminum producer United Co. Rusal International PJSC, which offer some insight into appetite for the nation’s assets via Hong Kong-traded securities, fell as much as 2.9%. The stock has slumped this year amid trading volumes that have fallen precipitously for the company in Hong Kong. Yet in broad terms, aside from commodities trades, Russia has largely become cut off from from global financial markets due to sanctions imposed since the invasion, thus limiting the impact on Monday. The latest developments in Russia is “not an element that creates uncertainty or volatility for markets,” Adrian Zuercher, chief investment officer at UBS Global Wealth Management, said in an interview with Bloomberg TV. “You can see market reactions are muted so far.” Stocks traded higher in South Korea while those in Japan and Hong Kong fluctuated and benchmarks in mainland China, Australia and New Zealand fell. Futures for the S&P 500 rose around 0.2%, recovering some of the lost ground that saw US stocks notch their worst week since March. Anxiety has been rising in equity markets that central banks will have to ratchet interest rates higher to tamp down inflation, and in the process push the economy into reverse. The yen strengthened after Japan’s top currency official said he wouldn’t rule out any options to handle currency matters appropriately. The yen last week depreciated to the weakest since November after the softer-than-expected PMI data in both Europe and the US fanned fears the global economy may be succumbing to pressure from higher interest rates. The offshore yuan fluctuated and the onshore yuan was down 0.6% despite China setting its daily reference rate for the currency at a stronger-than-expected level to slow its slide. The ruble weakened at the open on Moscow Exchange.
Nikkei -0.23% Hang Seng -0.14% CSI -0.72% Shanghai -0.74% Shenzen -0.80%
Eur$ 1.0905 CNH 7.2225 CNY 7.2191 JPY 143.42 GBP 1.2734 CHF 0.8961 RUB 84.4532 TRY 25.2361 WTI$ 69.37 +0.30% Gold 1,925 +0.17% BTC 30,244 -0.46% ETH 1,877 -0.90%
S&P +0.15% Nasdaq +0.20% EuroStoxx +0.16% FTSE +0.04% Dax +0.13% SMI -0.22%
Macro :
- Ardian Raises $20b to Buy Stakes in Buyout Funds: FT
Keep an eye on :
- ABF LN : AB Foods 3Q Retail Revenue Misses Estimates
- AIR FP : Airbus Can’t Make Planes Fast Enough Amid Demand, CEO Says: WSJ
- AF FP : Putin increases charges for flying over Russia in scramble to raise cash
- BNP FP : BNP, Barclays €5 Billion FICC Face 2Q Dip, as Equity, Deals Drag
- DANSKE DC : Infosys gets Five-Year Contract From Danske Bank Worth $454M
- EDF FP : EDF to Sign New 10-Year Contract With Aluminum Maker Trimet
- ENX FP : Euronext Sells LCH SA Stake to LCH Group Holdings for €111M
- LEON SW : Leonteq Cuts FY Pretax Profit Forecast to CHF40M to CHF70M
- META US : Meta Is Well-Prepared to Meet Europe Content Rules, Breton Says
- NOVOB DC : Novo Nordisk Plans to Introduce Wegovy in Germany in July: FAS
- NOVOB DC : Novo CagriSema Impresses on Weight Loss; Key to Long-Term Growth
- RNO FP : Renault Sells €200m Stake in UK Formula 1 Unit to PE Group
- SFL IM : Safilo in Advanced Talks With LVMH’s Thelios Over Italy Plant
- SBBB SS : Sweden’s SBB in Exclusive Talks to Sell 51% of SBB EduCo
- SDRL NA : Seadrill in Active Talks to Sell Qatar Jack-Ups, Gulfdrill Stake
- SKAB SS : Skanska Gets Contract Worth SEK9.1b for Work at US Airport