Bond Yields do not intend to reduce
Weekend holidays continue in Europe with Easter, and the US calendar is not too busy, which made US markets have a limited movement.
The latest news from Ukraine is not so good. Russia punished Ukraine for targeting the "Moscow ship" and attacked the western city of Lviv and a few targets in Kyiv. Peace talks are currently paused and we do not have any update on when it's going to start again. According to an earlier announcement by Russian officials, Russia's proposed time to surrender deadline ended and even it has been rejected by Ukraine. At the same time, Russians claim that Maripol is already under their control and they even they issue traffic documents for residents.
On the other hand, President Vladimir Putin ordered Russian companies and banks that trade abroad, to start the delisting process from foreign bourses and exchange receipts for shares. The circulation of stock depositary receipts of these companies will be terminated and will be relocated to the domestic stock market. This is while already western bourses have halted trading of Russian securities.
Stock markets had another news as well for today as earnings continued by financial institutes. Bank of America beat the estimates, but Charles Schwab and Bank of NY Mellon, both missed the market expectations.
With increasing concerns over supply chain bottlenecks and inflation, bond yields in the United States are increasing. 10-years benchmark yields increased towards 2.85% and the US dollar index traded close to the 101 mark. These all tell us that pressure on the stock markets can continue unless we can see some calm in the international geopolitical tensions.
The benchmark S&P 500 and Dow Jones industrial both lost 0.3% in the first trading hours. Nasdaq composite gets more pressure as tech stocks with higher bond Yields have a worse situation.
With the current situation in the markets, the US dollar still holds its safe-haven demand, and the 101 Mark is the next target as we were expecting to see that two weeks ago.
