4.02pm: Equities decline at closing
US stocks ended mixed on a volatile Monday as investors closely followed the escalating crisis between Russia and Ukraine.
At the closing, the Dow Jones Industrial Average lost 179 points, or 0.5% at 33,879, and the S&P 500 shed 0.3% at 4,373, while the Nasdaq Composite closed in the green, with gains of 0.4% at 13,751.
The three major US averages are on track for a loss of roughly 4% each this month.
12.05pm: Stocks volatile as crisis deepens
US equities were mixed midday on Monday as investors await pointers from talks between Moscow-Kyiv to potentially end the military invasion of Ukraine, and as tightening sanctions against Russian bite.
By noon, the Dow Jones Industrial Average was down by almost 200 points or 0.6% at 33,860, and the broader S&P 500 lost 0.2%, both above opening lows, while the Nasdaq Composite added 0.6%.
"Markets have shrugged off some of the events of the weekend, holding up better than many had feared given the ongoing conflict in Ukraine,” commented Chris Beauchamp, chief market analyst at IG. “While still down from Friday’s close, equity markets have been steadily closing the gaps down many suffered as trading got underway this morning.”
Among the outperforming stocks Monday were Tesla, gaining almost 8%, as well as chipmaker Nvidia whose shares soared by 2%— sending the Nasdaq in the green.
Defense stocks including Northrop Grumman (NYSE:NOC) and Lockheed Martin (NYSE:LMT) were also up, gaining 7.1% and 5.5%, respectively.
“The lack of any obvious progress in the Russia-Ukraine ceasefire talks has not provoked any further selling, and for now the lows of the day are intact,” noted Beauchamp. “Even Russian threats of escalation do not, as yet, appear to be having much of an impact.”
He said that overall, the initial shock of conflict has worn off, and aside from the huge impact on Russian stocks and the ruble the atmosphere is far less febrile than it was last week. “It looks like a major escalation in the conflict would be required to prompt a further leg down.”
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Maverix Metals sets 2022 outlook, delivers asset portfolio update
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GR Silver Mining (TSX-V:GRSL) Ltd announces management changes as exploration plans at Plomosas project in Mexico 'crystallize'
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GlobalBlock Digital Asset Trading provides update on subsidiary’s application to UK financial regulator
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Esports Entertainment announces pricing of underwritten public offering to raise gross proceeds of around $15.0 million
10.00am: Stocks in the red
US stocks tanked at the open on Monday after fresh sanctions were levied against Moscow over the weekend, while investors closely followed the ongoing talks between Russia and Ukraine to potentially end an escalating war.
In New York, the Dow Jones Industrial Average lost almost 400 points, or 1.1% at 33,670, while the tech-laden Nasdaq Composite shed 0.8% and the S&P 500 was down by 1%.
“The response to previous sanctions was underwhelming, to say the least, but the latest batch undoubtedly has the teeth that the others lacked,” noted Craig Erlam, senior market analyst, UK & EMEA, OANDA. “That's been most clearly evident in the FX markets, where the rouble plunged more than 30% to record lows and that could have been much worse but for swift action by the central bank.”
Western countries proceeded to bar key Russian banks from the SWIFT system over the weekend which connects over 11,000 banks and financial institutions worldwide.
The Central Bank of Russia followed up with an emergency rate hike, raising the key rate to more than double from 9.5% to 20% as a response to the volatile currency markets.
Erlam noted that this measure has enabled the rouble to pare those initial losses but the Russian currency remains under severe pressure. “The latest sanctions are hard-hitting and will weigh heavily on the economy. And that's before we see the second-round effects.”
“BP has shown us today the political pressure that companies are going to be under to sever ties with Russia, especially where there's shared interest with the Kremlin,” Erlam said. “The level of horror at the events in Ukraine being experienced around the world, combined with that political pressure, will continue to see companies cut ties which will compound the impact of the sanctions.”
6.30am: US stocks seen opening mixed
US stocks are expected to open mixed as officials from Ukraine and Russia meet in neighboring Belarus to try to reach an agreement to end the conflict that escalated over the weekend as Russia’s offensive on Ukraine was met with fierce resistance.
Futures for the Dow Jones Industrial Average declined 1.25% in Monday pre-market trading, while those for the broader S&P 500 index rose 0.79% and the tech-heavy Nasdaq added 0.13%.
The Russian ruble plunged by almost 30% to trade at a new record low of 106 rubles per dollar after Western countries blocked a list of Russian banks from the Swift global payment system. Fears that oil supplies could be disrupted sent Brent crude 5% higher and European gas futures rose by more than 60%. Safe-haven gold moved back above $1,900.
“The decision to cut Russia from the global payment system could possibly halt gas supplies to Europe and lead to dangerous economic consequences on the continent and the rest of the world,” commented Hussein Sayed, chief market strategist at Exinity.
US markets ended with significant gains on Friday as Russia agreed to talk to Ukrainian diplomats amid the geopolitical crisis.
The Dow Jones ended 2.51% higher at 34,059, while the S&P 500 added 2.24% at 4,385 and the Nasdaq Composite rallied with gains of 1.64%, ending at 13,695.
“Investors are still trying to figure out what happens next and act accordingly,” Sayed continued. “Dip buyers emerged on Thursday and Friday, just one day after the large-scale military attack, but now they are seeking shelter again after they realized that this war is not a one-day event and outcomes are hard to predict.
“The world has not seen a military confrontation on such a scale since World War II, and no one seems to know how this will end. It’s not just the direct effects that worry investors such as the short-term impact on commodity prices, but the longer-term consequences are of even greater importance.”