U.S. equities futures advanced as the U.S. commemorate Labor Day on monday
U.S. stocks futures rose modestly on Monday as the nation commemorate Labor Day, so the U.S. stock market was closed. Subsequently, Dow Jones futures increased 0.4%, S&P 500 futures increased 0.3% whiles Nasdaq 100 futures increased to 0.3%. The 10-year yield Treasury rose 3 basis point to 3.22%. Gold spot price is at $1,715.10 while WTI crude oil futures for October is at $88.74 per barrel following an OPEC+ meeting of cutting output to 100,000 barrels a day next month.
As reported by Bloomberg, according to an internal report drafted on August the 30 for the top officials, Russia may face a longer and deeper recession as the impact of US and European sanctions starts to kick in, handicapping sectors that the country used to rely on for years. A few scenarios in the report show the contraction accelerating next year with the economy returning to the pre-war levels only at the end of the decade or later. At the same time, Ukraine continued to score some military successes in its southern regions as well as in the north, Ukraine’s Prime Minister Denys Shmyhal noted, calling for the country’s allies to help Kyiv finish the war as soon as possible. Russian equity market continued losing this Tuesday morning retreating from its highest levels in more than four months, as investors weighed the impact of Gazprom’s decision to keep Nord Stream pipeline closed. Both IMOEX and RTSI lost around 0.2-0.3% and trade at 2,484 and 1,284 respectively. Energy giants Gazprom, Lukoil and Rosneft were among the worst performers along with Sberbank. Novatek and Norilsk Nikel continued trading higher. Russian ruble lost this morning and now is set to reach new lows against the Dollar, as most emerging currencies declined. Both USDRUB and EURRUB are up this morning and trade at 60.91 and 60.65 respectively. Expectations of a start to purchases of “friendly” currencies under the budget rule, as well as predictions that these purchases could be large-scale contributed to ruble weakness. In bonds news, 10-year benchmark ruble bond yields lost 4 bps to 8.37%. According to the filing on Monday, Lukoil PJSCT launched a consent solicitation from the holders of its dollar-denominated bonds to introduce an alternative payment to simplify the cancellation of the notes that may be purchased by the group.
A largely muted open for SSA as treasuries resume trading with a pick-up in yields. KENINT (+1.50) the standout performer on Monday as the Supreme Court upheld William Ruto’s presidential election win; the same is up 0.50pts at the open. GHANA (+.50) the other gainer at the open with offers on long end seen above 40.