U.S. equities in a choppy session ahead of tomorrow’s FOMC meeting
U.S. stocks ended higher on Monday as investors are highly anticipating the outcome of tomorrow’s Fed Reserve meeting that’s expected to deliver another large interest- rate hike and shed further light on the central bank’s plans for monetary policy.
Subsequently, Dow Jones increased 0.6% to finish at 31,019.68, S&P 500 increased 0.7% to finish at 3,899.89 while Nasdaq 100 added 0.8% to finish at 11,535.02. The 10-year yield Treasury increased from 3.411% to 3.490.
Gold spot price declined to $1,679.70 per ounce while WTI crude oil futures for October declined 0.2% to $85.60 per barrel.
Ukraine has pushed further into Russia occupied territory following the rout near Kharkiv with its troops entering Bilohorivka, returning to Luhansk province just two months after Russia took a full control of it. Meanwhile British Prime Minister Truss committed Britain to spending at least £2.3 Billion in support to Ukraine in 2023. Russian stock market slid for a third consecutive session on Tuesday as intensifying European efforts to stop energy crisis pushed the price of the natural gas to the lowest level in almost two months. Both IMOEX and RTSI were lower losing 1.63% to 2,391 and 1.41% to 1,252 respectively. Energy providers Novatek and Lukoil were among the worst performers along with a property developer PIK. Online recruitment service HeadHunter climbed 3.2%. Russian ruble strengthened both against the US Dollar and Euro, as Russian exporters started to sell currency for upcoming tax payments. This morning USDRUB lost 0.10% to 60.06 and EURRUB lost 0.08% to 60.09. At the same time, some analysts point out, that the news on the so-called budget rule, that is expected in the near future, may pose a risk of pressure for the ruble very soon. Russian bonds yields continued rising post interest rates announcement on Friday with 10-year benchmark bonds currently yielding 9.81%, up 1 bps. In corporate bonds news, Sovcomflot board has approved a placement of two local bonds denominated in USD with maturity in 2023 and 2028, which would replace Eurobonds with the same maturity. Settlement on new bonds will be in rubles at official exchange rate.
SSA resumes full trading up as outside bets on a full-point hike from the FOMC on Wednesday appear to have dissipated. ANGOL (+.25) and NGERIA (+.375) leading at the open as Brent trades some 4% above yesterday’s low of $88.50/bbl. ZAMBIN opens flat on the day 22s were supposed to have matured.