US Futures Edge Higher Alongside Global Markets, Oil; Gold Lays Flat — Is Investor Fear Over Russia-Ukraine Conflict Subsiding?

As the Russia-Ukraine crisis persists, Western powers announced sanctions on Tuesday. The geopolitical scenario seems to have been taken by the global markets in their stride.

U.S. Futures Rise: The Dow Jones Industrial Average futures rose 0.45% to 33,677 at press time and Nasdaq futures rose 0.7% to 4,323 and 13,960.75. The S&P 500 futures rose 0.55% 4,322.25. The SPDR S&P 500 ETF Trust SPY closed 1.07% lower at $429.57 on Tuesday.

“US stocks are well off the morning lows as some traders feel a lot of expected Ukraine-Russia conflict was already reflected in the selling pressure that took place over the past few weeks,” wrote Edward Moya, a senior analyst at OANDA, in an emailed note.

Moya said while consumer confidence is weakening, the growth story for the year remains intact. He pointed to headline confidence reading that fell from a revised 111.1 to 110.5 in his note. 

“The headwinds are visible to everyone but the weakness is modest at best,” said the analyst.

“The economy and the consumer are still on solid footing and that should support a strong economic recovery once inflationary pressures that are stemming from geopolitical tensions abroad subside.”

Mixed Asian Markets: Asian markets were mixed on Wednesday. The Hang Seng Index traded 0.6% higher at 23,660.07. Tokyo’s Nikkei was down 1.7% at 26,449.61.

India’s Sensex traded 0.57% higher at 57,624.59, while the SET index in Bangkok traded 0.21% lower at 1,687.61.

Buyers returned to Hong Kong bourses after a sell-off that wiped out more than $141 billion of market value in tech stocks since Friday, according to the South China Morning Post.

Oil Pulls Back: Oil prices subsided on Wednesday as the market anticipated the return of Iranian crude to the market as the country may benefit from the revival of a nuclear agreement, reported Reuters. 

WTI Crude April 22 futures traded 0.02% lower at $91.89, while ICE Brent Crude April 22 futures traded 0.05% lower at $96.79.

Sanctions imposed on Russia, after the country’s President Vladimir Putin announced recognition of two breakaway Ukrainian regions, will reportedly not impact energy exports.

“The sanctions that are being imposed today as well that could be imposed in the near future are not targeting and will not target oil and gas flows,” said a senior U.S. State Department official, according to Reuters. 

Gold Lies Flat: Spot gold prices were little changed at $1,896.51 at press time. April 22 Gold COMEX futures traded flat as well at $1,898.30. 

“Gold has tentative resistance at the $1920 level, but beyond that lies the $1950 area,” said OANDA’s Moya.

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