Stock Market Updates.

029, Mar 2022

European stocks end the day higher as investors monitor the situation in Ukraine.

 

As most sectors and major bourses entered positive territory, the Stoxx 600 provisionally closed up 0.3 percent, with auto shares leading the advances with a 1.2 percent rise.

 

More than a month after Russia began its invasion of Ukraine, global markets are keeping a careful eye on the situation.

 

President Volodymyr Zelenskyy of Ukraine has stated again that his country is willing to consider adopting a neutral status as part of a peace agreement with Russia. In the meantime, US Secretary of State Antony Blinken has sought to clarify President Joe Biden's remarks that Russian President Vladimir Putin "cannot remain in office."

 

Despite the fact that European equities were grinding higher on Monday, Morgan Stanley's top European equity strategist, Graham Secker, told CNBC that the most investors can expect for is for stock valuations to remain flat in the foreseeable future.

 

"The multiples appear to be adequate, but not very inexpensive. They're basically in line with their very long-run average, and given the extremely difficult situation we're in right now, combined with the Fed hiking rates, it's difficult to see multiples rising," Secker said.

The Stoxx 600 index is up 1.8 percent as discussions between Ukraine and Russia begin.

 

By mid-afternoon, the Stoxx 600 had gained 1.8 percent, with cars leading the way with a 4.5 percent rise, as all sectors and major bourses traded in the green.

 

Storskogen Group, a Swedish investment company, increased its share price by more than 12% to lead the European blue chip index, while K+S, a German chemicals company, plummeted by 5%.

Investors in the region were focused on developments in Russia's invasion of Ukraine, resulting in increases across Europe. Face-to-face talks between the two parties are expected to begin this week, with teams from both countries arriving in Turkey on Tuesday as talks resumed.

Stock futures rise as Dow and S&P 500 aim for 4-day winning streak.

 

Stock futures gained early Tuesday, putting the major averages on track to extend their gains from the previous session.

 

The Dow Jones Industrial Average increased 200 points, or 0.6 percent, in futures trading. Futures on the S&P 500 were up 0.6 percent, while Nasdaq 100 futures were up 0.7 percent.

 

On Tuesday morning, growing optimism of a Russia-Ukraine truce appeared to boost investor morale. The price of West Texas Intermediate crude, which had risen sharply during the invasion, has dropped more than 4% to $100 per barrel.

 

To be fair, both sides have stated that a settlement is not imminent. "Nothing is agreed upon unless everything is agreed upon," Ukrainian Foreign Minister Dmytro Kuleba said ahead of the talks in Turkey.

 

Meanwhile, the United Kingdom warned that Russian troops continue to represent a "serious threat" to Kyiv, Ukraine's capital, despite Russia's reorganization of its forces.

Tesla, Coinbase, and AMC Entertainment are the stocks with the largest changes in the middle of the day.

 

Tesla: Tesla stock rose 8% on Monday after it was announced that the electric vehicle maker will ask shareholders at its annual meeting to approve a stock split in order to pay stock dividends to shareholders.

 

Coinbase: The cryptocurrency services firm's stock climbed 7.8% after a local publication reported that the company is in talks to buy 2TM, the parent company of the Brazilian cryptocurrency brokerage Mercado Bitcoin, and that the deal may be completed by the end of April. The move also corresponds with a substantial increase in bitcoin's price over the weekend, erasing its losses from 2022.

 

AMC Entertainment: It is a company that produces movies. After CEO Adam Aron suggested additional "transformational" M&A acquisitions are likely, the movie theater company's stock soared 44.9 percent. The remarks came after the corporation announced earlier this month that it had invested in Hycroft Mining, a gold and silver mining company.

After all three benchmarks closed at 6-week highs, stock futures point to a higher open.

 

Following a tumultuous previous session in which stocks rose in the closing hour to close the day at six-week highs, futures on Wall Street's main indexes moved higher in pre-market trading Tuesday.

 

The S&P 500 index was up 0.4 percent, and the Dow Jones Industrial Average was up 150 points. The Nasdaq Composite futures were up 0.3 percent after the index was boosted by a recovery in technology companies earlier in the day. The sector's big names — Tesla, Amazon, and Apple — all recovered in intraday trade Monday after a shaky start to the year fueled by risk aversion following the Federal Reserve's interest rate hike.

 

"Corporate America is in excellent shape — earnings estimates for 2022 are higher now than they were at the start of the year, which is no small feat," LPL Financial equity strategist Jeff Buchbinder wrote in a note, adding, however, that the upbeat outlook was not without risks, particularly in light of the Fed's inflation fight. When the Federal Reserve last raised rates three years ago, the S&P 500 had a 19 percent correction, according to Buchbinder.

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