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Stocks Settle Lower as Wave of Sanctions Pressure Roils Russian Assets

EQUITIES
  • Acute volatility across Russian currencies unsettled developed market equities on Monday, putting all three major Wall Street indices and European markets into the red. A wave of sanctions pressure prompted the USD/RUB rate to trade to fresh highs of 112 (an intraday gain of over 35%) at some points of the Monday session, and while Russian equities remained closed, US and European equities gapped lower.
  • The e-mini S&P shed around 120 points at the open, but the losses were gradually recouped across European and US hours to put the index broadly flat following the London close.
  • In the cash S&P 500, real estate and consumer staples made up the worst performers, while energy and industrials fared more favourably. Defense names were a particular source of strength, putting the likes of Northrop Grumman, Raytheon and Lockheed Martin among the index's best individual performers.
  • E-Mini S&P technical conditions remain bearish however price remains above last Thursday's 4101.75 low. Short-term momentum studies highlight bullish divergence between price and this still suggests scope for corrective cycle higher.
MNI London Bureau | +44 203-865-3809 | edward.hardy@marketnews.com

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