S&P500.
The US market grew despite new concerns about Ukraine.
The major US indices rose at the opening of the week: the Dow Jones added 0.3%, the NASDAQ gained 1.9%, the S&P500 went up 0.8%. Therefore, the S&P500 and the NASDAQ grew significantly.
The S&P500 is trading at 4,582. It remains in the range of 4,540 - 4,620.
Energy. Oil is rising by nearly 2% on Tuesday. However, Brent crude oil has not exceeded the level of $110 per barrel yet. It is trading at $109 this morning. Notably, the US will release about 1 million barrels a day from its strategic reserves to lower oil and gasoline prices.
The Russia-Ukraine conflict remains of crucial significance. The last few days were calm. However, Russia is likely to launch a new offensive on Ukraine in the near future. Most experts note that Russia is regrouping its forces and is preparing for a potential strike in Kharkiv and the Donbass region.
At the same time, people all over the world were deeply shocked by photos and videos from Ukraine's Bucha. Consequently, Western countries have become more determined: a) to transfer weapons to Ukraine; b) to strengthen anti-Russia sanctions. On Wednesday, EU countries will discuss new sanctions against Russia. Various restrictions on Russian oil and gas exports are being considered. For example, imposing a high duty on Russian exports could force buyers to search for new suppliers as Russian fuel would become too expensive. Otherwise, Russia would have to offer customers a substantial discount. Moreover, the gas issue, banning gas imports in particular, is likely to face a strong backlash from Hungary. Orban's party, backing Putin, has just won an election.
Yesterday, the UK rejected Russia's request to hold an emergency meeting on the events in Ukraine's Bucha. The possible reason for it is that a UN Security Council meeting is scheduled on Ukraine's initiative today. Zelensky said that mass graves of murdered civilians had already been discovered in Bucha as well as in neighboring towns liberated from Russian troops in recent days.
Negotiations. The peace talks between Russia and Ukraine have not made any significant progress yet as there is no consensus on the issues of Crimea and Donbass. Any progress is unlikely until Russia will launch a new attack on Ukraine. Moreover, its possible outcome is unexpected.
The first round of the Russia-Ukraine conflict has evidently ended. However, the second round has not started yet. Russia's first offensive ended in a complete retreat from northern Ukraine (Kiev, Chernihiv, partly Kharkiv). However, Russia's second offensive is expected soon.
Russia's ruble has hit its all-time of 84 and 92, strengthening against the US dollar and the euro. It is possible to buy major currencies for rubles.
US news. Industrial production in the US declined by 0.5% in February. The US economy is gradually slowing down.
ISM services sector report will be released today. Economists forecast an increase by 57%.
The USDX is trading at 98.90 and is expected to be in the 98.60 - 99.20 range. The dollar is sluggishly rising to its 1-year high. The Fed's statements provide no strong support to the dollar. The Fed's minutes will possibly strengthen the dollar tomorrow.
The USDCAD is trading at 1.2470, the range is 1.2400 - 1.2520. Oil is rising more rapidly than the dollar. Currently, a downward pressure is possible.
Conclusion: The US market will most likely grow. However, new Ukraine woes are expected in the coming days.
