Gonet: market news from March 29

Dow +0.27%, S&P 500 +0.71%, Nasdaq +1.31%, Russell 2000 +0.00%, SOX +0.62%, Eurostoxx +0.50%, SMI +0.28% .

Wall Street starts the week calmly and on an optimistic note. Hope for progress in the negotiations between Russians and Ukrainians remains in force, and the decline in oil prices somewhat relaxes everyone in the trading floors. U.S. indices closed at the high of the day, trading volumes were low and volatility further declined, VIX (SPX volatility) shed 5.6% and fell below 20 again. In terms of sectors, discretionary consumer securities are managed by Tesla (TSLA +8%) , which wants to split its shares, and Amazon (AMZN +2.56%), which goes into positive territory for the year (+1.36%). In passing, we note that Apple reaches the 10th session of growth in a row. Energy suffers, barrel of WTI Light Crude retreats this morning and returns to $105, Shanghai city lockdown has market wary of a marked drop in demand. On the bond side, the US 10-year yield eased slightly to 2.47% after testing 2.50% yesterday. The yield curve, on the other hand, is not rolling at all and is getting closer and closer to an inversion on the 2-10 year portion, and the spread has dropped to just 6 basis points this morning.

There is blatant uncertainty in this market these days, with the exception of so-called retail investors, who have been as active as ever again over the last few sessions of YOLO (You Only Live Once) mode. The dollar is in demand, the EUR/USD pair is trading at 1.1000, gold is rising slightly to 1923 dollars per ounce.

Ukraine’s minimum goal in talks with Russian negotiators starting today in Turkey is an immediate improvement in the humanitarian situation. There are signs of strategic divisions within NATO allies over any peace deal over whether to negotiate with Vladimir Putin and what security guarantees can be offered to Kiev. Joe Biden says he expressed outrage at the invasion when he said Putin “can’t stay in power.”

The yen is trading near a six-year low against the dollar as the Bank of Japan continues to intervene in the bond market to curb yield growth.

Joe Biden is making a new push to convince Congress to overhaul the tax code and squeeze more income out of the biggest corporations and richest households. The Treasury Department has unveiled plans to increase taxes on corporations and high incomes by $2.5 trillion, including a modified wealth tax and the removal of deferred interest tax relief for investment funds. At the same time, Senator Joe Manchin says that he does not support this plan, which means that it is unlikely to become law.

The US Department of Justice is backing an antitrust law that bans platforms like Amazon and Google from promoting their own products and services. In passing, Amazon is the first tech mega-cap to recover its losses in a year, followed by Apple and Alphabet. Tesla gets $84 billion in market value from the proposed stock split.

Shanghai tightens containment measures as cases continue to rise. Global demand for vaccines is declining, which could lead to lower sales of blockbuster vaccines from Pfizer and AstraZeneca and create problems for local manufacturers.

In the United States, three indicators are expected: the FFHA House Price Index for January (3:00 pm), followed by the JOLTS Jobs Survey for February, and the Conference Board Consumer Confidence Index for March (4:00 pm).

Elon Musk plans to create a new social network that will compete with Twitter. The Brazilian government fires Petrobras boss Joaquim Silva and Luna. Walmart stops selling cigarettes in some stores. After 50 years at the head of FedEx, Frederick Smith is retiring. Sonova launches a new share purchase program worth 1.5 billion francs. Daimler Truck is cutting production at several sites due to semiconductor shortages. Nestlé is in talks with FnB to sell Mousline purees.

In Asia last night and this morning, indexes are trading in positive territory, except for Shanghai, which fell 0.36%. Tokyo was up 1.1% after the bell, Hong Kong was up 0.96% and Seoul was up 0.42%. Future SPX rose 8 points and Europe opened up about 1%.

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