S&P500
The US stock market has rebounded strongly.
Main US stock indexes made significant gains on Thursday, with the Dow Jones gaining 0.3%, the NASDAQ rising by 3.3%, and the S&P500 adding 1.5%.
Early on Thursday, the US stock market dived, but reversed upwards after Biden's statement on Russia's war against Ukraine and closed in positive territory.
Asian markets advanced as well, with the Nikkei 225 and the Shanghai Composite rising by 1.7% and 0.8% respectively.
Oil prices have reached the highest point since 2014 due to the ongoing war. On Friday, Brent increased by 2% to $101 per barrel.
Yesterday, the Russian stock market experienced its largest crash in 20 years. Major Russian indexes dived by 30-35%. Stocks such as Sberbank, Rosneft and Gazprom lost 50% during the day on fears of Western sanctions.
On Thursday, the Russian air force bombed Ukrainian military bases, munition depots and airfields. Official Russian reports claim 83 Ukrainian sites were destroyed. Russian troops invaded Ukraine from the Crimean Peninsula, from Belarus to the north and Russian territory to the east. In the south, Russian forces have taken over the North Crimean Canal to restore water supply to Crimea. Ukrainian defensive lines are under severe pressure and are likely to collapse in the future. Ukrainian president Zelensky stated Ukraine was open to peace negotiations and discussing the neutral status of Ukraine.
US president Biden announced sanctions against Russia, including blacklisting of 5 biggest Russian banks such as Sberbank and VTB. They would be banned from making transactions in USD and EUR. The EU has halted the Nord Stream 2 project.
French president Macron had a phone call with Vladimir Putin. No agreements have been made.
The S&P 500 is trading at 4,289 and is expected to be in the 4,250-4,330 range.
US stock market went up sharply yesterday after a bullish reversal. The market probably expected Russia's war against Ukraine to stay within Ukrainian borders.
Latest US GDP data suggests the American economy has expanded by 7% in Q4 2021, slightly exceeding expectations. Unemployment declined to 1.47 million, with 232,000 initial jobless claims made this week.
New house sales remained unchanged at 801,000.
Today, a key US inflation report for January will be released alongside household income and spending data. Inflation is likely to remain high, but the Fed's decision to hike the rate in March could be revised as the war in Ukraine unfolds.
The war could push crude oil prices up to $130 per barrel if supply from Russia is interrupted. The price of natural gas in Europe went up to $1300 from $900 before the war.
US oil stockpiles increased by 4.5 million barrels over the week. Yesterday, Biden stated the US were ready to sell large amounts of oil to stabilize prices if necessary.
USDX is trading at 96.80 and is expected to be in the 96.50-97.10 range. Similar to US equities, USDX trading was volatile yesterday. The index made strong gains early on Thursday, reaching a new yearly high of 97.70 before retreating back into the price range.
USD/CAD is trading at 1.2780 and is expected to stay in the 1.2700-1.2860 range. The pair moved alongside USDX yesterday, currently ignoring rising oil prices.
Although the US stock market is out of the downtrend, it will likely not go up immediately. Bullish momentum can only appear when war between Russia and Ukraine will cease
