Equity markets all over the world are poised to chalk up another losing day, as the tension in Ukraine hasn’t subsided. However, there have been reports that Russia’s Vladimir Putin already called back troops to their bases after conducting military exercises in the border of Russia and Ukraine.
In today’s Asian trading session, this was met with a bit of risk-taking among equity markets, leading to an overall 0.47% gain for the Nikkei on the day. However, equity markets in other countries such as Australia didn’t fare so well since the Reserve Bank of Australia (RBA) emphasized that the Australian dollar is still trading high by historical standards. This lead to a continuation of the AUD/JPY and AUD/USD selloff after shallow retracements.
London, US Equity Markets to Open Higher?
Despite the prevailing uncertainty in the political and financial scene, global equity markets seem poised to open higher in today’s trading, as traders booked profits off their recent shorts on the news that Russia is starting to withdraw its forces. However, it remains to be seen whether these gains can be sustained or not, depending on how political troubles fare in the coming hours.
In Monday’s trading, US equities closed with losses, as the Dow was down by 154 points or 0.94% while Nasdaq chalked up a 0.72% decline. Stronger than expected economic data from the US, namely the final manufacturing PMI and the ISM version of the report, were not able to provide enough support for US equity markets.
As of this writing, stock futures are hinting at a potential recovery in today’s upcoming trading sessions, provided that there are no surprises from Russia. S&P500 futures showed a jump of 10.3 points while DJIA futures indicated a 0.73% rise. Commodities are starting to retreat, with gold closing in a 0.80% dip and crude oil futures showing a smaller decline, indicative of a slight improvement in risk sentiment.