Equities recover as US announces sanctions

Asian equities stage a sanctions dead-cat bounce

A sense of “it could have been worse” swept New York late in the session after the White House announced its incremental Russian sanctions. That allowed US equities to reverse some of their losses, helped by decent economic data, but they still finished in the red. The S&P closed 1.02% lower, the Nasdaq lost 1.23%, and the Dow Jones closed 1.42% in the red. The buy-the-dippers are out in Asia as well as the Ukraine news ticker goes quiet for now. Futures on the S&P are up 0.40%, the Nasdaq by 0.55%, and the Dow Jones by 0.55%.

 

The same sentiments are also lifting Asian markets cautiously higher today after a torrid week so far. Japan is closed, but the South Korean Kospi is up by 0.20%. In China, the Shanghai Composite and CSI 300 have risen by 0.55% while Hong Kong is 0.65% in the green.

 

Weak results from OCBC have pushed Singapore 0.75% lower but elsewhere in ASEAN, markets are higher. Taipei has risen by 0.25%, Jakarta by 0.40%, Kuala Lumpur by 0.75%, Bangkok is flat, and Manila has eased 0.70% lower. Down in the lucky country, Australian indexes are in the green, helped along by the commodity rally overnight. The ASX 200 is 0.35% higher, while the All Ordinaries has rallied by 0.50%.

 

European markets will struggle to match Asia’s rally although if the Ukraine news ticker goes quiet for a couple of days, I fully expect equities globally to continue rallying on a no news is good news play. Don’t be fooled though, the moment the Ukraine situation darkens, so will equity markets.

This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.

Jeffrey Halley

Jeffrey Halley

Senior Market Analyst, Asia Pacific
With more than 30 years of FX experience – from spot/margin trading and NDFs through to currency options and futures – Jeffrey Halley is OANDA’s senior market analyst for Asia Pacific, responsible for providing timely and relevant macro analysis covering a wide range of asset classes. He has previously worked with leading institutions such as Saxo Capital Markets, DynexCorp Currency Portfolio Management, IG, IFX, Fimat Internationale Banque, HSBC and Barclays. A highly sought-after analyst, Jeffrey has appeared on a wide range of global news channels including Bloomberg, BBC, Reuters, CNBC, MSN, Sky TV, Channel News Asia as well as in leading print publications including the New York Times and The Wall Street Journal, among others. He was born in New Zealand and holds an MBA from the Cass Business School.
Jeffrey Halley