Daily market review

United States

Unconfirmed reports that Russia has pulled back some forces from the Ukrainian border and that President Vladimir Putin is open to diplomacy fueled a recovery in risk appetite, with equity market gains nearly across the board. The Dow Jones industrial average rose 1.2 percent, the S&P 500 advanced 1.6 percent, and the NASDAQ rallied 2.5 percent.

Technology and growth stocks led the winners despite another hot US inflation reading, with US producer prices showing an enormous 1.0 percent rise in January from December, double the market's expectation. Chipmakers gained, with Nvidia up 9.2 percent. Intel gained 1.8 percent after news it will buy Tower Semiconductor, which soared by 43 percent. Software and technology hardware stocks saw notable gains. A rebound in bitcoin and crypto stocks, including Coinbase, up 7.0 percent, showed the market's renewed appetite for risk.

Reopening stocks including airlines, cruise lines, restaurants, and hotels were also among the day's best performers as investors focused on improving Covid trends. Restaurant Brands, the fast food conglomerate, rose 3.6 percent on an earnings and revenues beat. Consumer discretionary and automakers advanced, with a boost from Tesla, up 5.3 percent. Among travel stocks, Marriott rose 5.8 percent after posting an earnings beat.

Old-economy stalwarts Boeing, up 3.7 percent, Nike, up 2.8 percent, and American Express, up 2.9 percent, were also among the day's leaders.

On the downside, energy stocks slipped with a retreat in oil prices on the Russia-Ukraine news. Industrial and precious metals fell back to dampen miners.

These price data reflect observations at 4:00 PM US ET: Dated Brent spot crude oil dropped US$2.71 to US$93.18 while spot gold fell US$19.60 to US$1,852.09. The US dollar fell vs. most major currencies. The US Treasury 30-year bond yield rose 6 basis points to 2.36 percent, and the 10-year note yield rose 5 basis points to 2.05 percent.


Reports suggesting de-escalation in Russia-Ukraine tensions lifted equities. The Europe-wide STOXX 600 gained 1.3 percent, the German DAX jumped 2.0 percent, the French CAC rose 1.9 percent, and the UK FTSE 100 was up 1.0 percent.

Among sectors, autos & parts, industrials, health care, chemicals, construction & materials, and personal & health care outperformed. Lagging were oil & gas and basic resources as they pulled back from recent gains.

Among companies in focus, Glencore rose 1.0 percent and Randstad, the human resources consultant, rose 5.1 percent, and Koninklijke DSM, up 2.7 percent, after better trading results. On the downside, Temenos, the software stock, fell 7.9 percent, and Michelin, the auto parts giant, fell 3.5 percent on earnings misses.

Asia Pacific

Asia was mixed with Japanese shares declining on disappointing company news and Ukraine worries; the Nikkei 225 and the wider TOPIX index both lost 0.8 percent. Soft Japanese growth figures were another negative as analysts noted Japan's sluggish recovery from the pandemic relative to global peers. Among companies in focus, Kubota lost 13 percent on an earnings miss. Toyota slipped 1.3 percent after guiding production plans lower. Toshiba fell 2.2 percent after saying it will press ahead with plans to split up the company.

China's CSI 300 index rose 1.1 percent and the value-stock heavy Shanghai composite rose 0.5 percent with a boost for growth shares after the People's Bank of China added liquidity aggressively in its open market operations. Hong Kong's Hang Seng index lost 0.8 percent as losses in mainland banking shares outweighed gains elsewhere.

The Taiwan Taiex slipped 0.3 percent and the South Korean KOSPI lost 1.0 percent with technology losses continuing. Indian equities rallied with the Sensex surging 3.1 percent on initial reports suggesting some easing in Ukraine tensions.

Declining commodities prices and risk aversion weighed on Australian equities with the All Ordinaries index down 0.6 percent. Falling iron ore prices and a retreat in energy shares depressed miners and oil & gas shares.

In economic news, Japanese gross domestic product rose a preliminary 1.3 percent on quarter, or at an annualized pace of 5.4 percent, in the fourth quarter, coming in slightly weaker than expectations centering on a 1.4 percent rise on quarter, or an annualized 5.7 percent increase.

Looking ahead*

In Asia/Pacific, Chinese CPI and PPI reports are scheduled. In Europe, UK CPI, UK PPI, and Eurozone industrial production reports are due. In North America, Canadian CPI, Canadian manufacturing sales, US import & export prices, US industrial production, US business inventories, and US housing market index, and US Federal Open Market Committee minutes are on tap.

Global Stock Market Recap

Global Bond Market Recap

Global Currency Recap

Commodities and currencies