Daily market review

United States

Headlines suggesting progress in Russia-Ukraine talks helped equities rise Tuesday with growth stocks leading for a second day. The Dow Jones industrial average rose 1.0 percent, the S&P 500 gained 1.2 percent, and the NASDAQ gained 1.8 percent.

Among sectors, technology, consumer discretionary, communications services, and real estate fared best while commodity-linked stocks lagged as oil and other commodities retreated. The day's Ukraine headlines spurred expectations that commodity supply disruptions will recede with a peace deal and an end to sanctions on Russia.

FANMAG and momentum stocks provided leadership including Meta, up 2.8 percent, and Netflix, up 3.5 percent. Electric vehicles, fintech, autos, airlines, restaurants, and retailers advanced. Homebuilders perked up with Lennar up 3.9 percent and Toll Brothers up 4.4 percent as long end US Treasury yields sagged.

Among companies in focus, Moderna, the vaccine maker, rose 4.4 percent after regulators approved a second anti-Covid booster for some people. Uber advanced 7.0 percent as it appeared close to a deal to allow people in San Francisco to use the Uber app to call a taxi, similar to the deal in New York City. Dave & Buster's Entertainment, a restaurant chain, rose 15 percent after management said business rebounded in the first quarter after poor results in the fourth quarter.

These price data reflect observations at 4:00 PM US ET: Dated Brent spot crude oil rose US$1.69 to US$111.06 while spot gold fell 13 cents to US$1,919.70. The US dollar fell sharply vs. most major currencies. The US Treasury 30-year bond yield fell 5 basis points to 2.50 percent, and the 10-year note yield lost 6 basis points to 2.40 percent.


Risk appetite improved to lift equities after hopeful-sounding headlines from Russia-Ukraine talks. The Europe-wide STOXX 600 gained 1.6 percent, the German DAX jumped 2.8 percent, the French CAC rallied 3.1 percent, and the UK FTSE 100 was up 0.9 percent.

Markets reacted favorably to reports that, after several hours of talks in Istanbul, a deputy Russian defense minister said Russia would reduce its military activity near Kyiv and elsewhere in Ukraine. That was in addition to other positive-seeming comments from negotiators on both sides. UK markets lagged the region as energy and basic resources retreated with declining commodities prices on the hopeful Ukraine view.

Growth stocks outperformed, in line with the trend in Asia. Best sectors included technology, banks, autos, and retail, while defensive sectors lagged, including health care, telecom, and utilities. Bitcoin and crypto assets surged for a second straight day, in a sign of renewed risk-taking.

Among auto parts makers, Elringklinger rose 13 percent after an earnings beat and Plastic Omnium gained 12 percent after announcing a move into the electric battery business. On the downside, Maersk, the shipping giant, fell 4.1 percent after warning about the impact of anti-Covid shutdowns in Shanghai.

Asia Pacific

Asia-Pacific equities were mostly higher with growth stocks leading although mainland China lagged as the government tightened anti-Covid restrictions in Shanghai.

Mainland Chinese stocks declined with most sectors lower and energy the only winner. The Chinese CSI 300 index eased 0.4 percent and the Shanghai index declined 0.3 percent. In contrast, Hong Kong stocks saw widespread gains led by technology, health care, and consumer stocks with the Hang Seng index up 1.1 percent.

Japanese markets improved with a boost from lower oil prices and the weaker yen while Japanese government bonds steadied after the Bank of Japan conducted two more rounds of purchases. Japan's Nikkei 225 rose 1.1 percent and the wider TOPIX rose 0.9 percent. Best equity sectors were automakers, marine transportation, and services.

The Taiwan Taiex rose 0.2 percent and the South Korean KOSPI gained 0.4 percent. The Indian BSE Sensex rose 0.6 percent.

Australian equities improved with technology shares rising as growth stocks outperformed and strong retail sales data lifted consumer stocks. Energy and mining stocks lagged as commodities prices retreated. The All Ordinaries index rose 0.8 percent.

In economic news, retail sales in Australia rose strongly for the second consecutive month in February, continuing the recovery from the slump late last year associated with the emergence of the Omicron variant. Sales rose 1.8 percent on the month while year-over-year growth picked up from 6.4 percent to 9.1 percent.

Looking ahead*

In Asia/Pacific, Japanese retail sales figures are scheduled. In Europe, reports on KOF Swiss leading index, Italian PPI, Eurozone EC economic sentiment, and German CPI figures are due. In North America, US ADP employment and US GDP reports are on tap.

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