Dow rose 349 (session highs), advancers over decliners about 2-1 & NAZ went up 269. The MLP index rose 2+ to the 206s & the REIT index was of 2+ to the 465s. Junk bond funds drifted lower & Treasuries were sold again, pushing 10 year yields well above 2.3%. Oil retreated 3+ to the 111s & gold advanced 26 to 1963 (more on both below).
AMJ (Alerian MLP Index tracking fund)
![Live 24 hours gold chart [Kitco Inc.]](https://www.kitco.com/images/live/gold.gif?0.2180338269244485)
Pres Biden said NATO would respond “in kind” if Russia uses weapons of mass destruction in Ukraine. “We will respond if he uses it,” Biden said, referring to Russian Pres Vladimir Putin. “The nature of the response depends on the nature of the use.” The pres spoke after a marathon of summit meetings with the EU, G-7 partners & NATO allies. Biden also said he would support an effort to expel Russia from the G-20 group of economies. The pres declined to say whether the US has evidence that China has helped Russia evade sanctions or sold American high tech equipment to Russia in violation of export bans. “I think that China understands that its economic futures much more closely tied to the West than it is to Russia,” said Biden. “And so I am hopeful that he does not get engaged.” “We also did discuss today that there’s a need for NATO to set up and and the EU to set up a system whereby we have an organization looking at who has violated any of the sanctions and where, when and how they buy [banned products],” Biden added. On sanctions, Biden said the reason why he asked for the NATO meeting was “to be sure that after a month, we will sustain what we’re doing, not just next month, the following month, but for the remainder of this entire year. That’s what will stop him.” The NATO alliance will be soon providing Ukraine with equipment to protect against chemical, biological, radiological as well as nuclear weapons, said Stoltenberg. He declined to elaborate on what kind of specific support the alliance would provide in order to protect operational security.
Biden says U.S. would ‘respond’ to Russia if Putin uses chemical or biological weapons
NATO has agreed to strengthen its defenses in Europe in the face of Russia's continuing aggression toward Ukraine. Speaking after an extraordinary summit of the military alliance in Brussels, NATO Secretary General Jens Stoltenberg said that the organization has collectively agreed to reinforce its defense capabilities in the region. “Today NATO leaders agreed to reset our deterrents and defense for the longer term to face a new security reality. On land, we will have substantially more forces in the eastern part of the alliance at higher readiness, with more pre-positioned equipment and supplies,” he said. “In the air, we will deploy more jets and strengthen our integrated air and missile defense. At sea, we will have carrier strike groups, submarines and significant numbers of combat ships on a persistent basis,” he added, with members also set to strengthen their cyber defenses. Further details would be decided at the alliance’s next summit in Jun. A statement from the alliance at the conclusion of its meeting called Russia's aggression against Ukraine, “the gravest threat to Euro-Atlantic security in decades.” “Russia’s war against Ukraine has shattered peace in Europe and is causing enormous human suffering and destruction,” it said. Global leaders gathered in Europe to discuss the war in Ukraine & how to help the country survive Russia's onslaught. As well as the extraordinary NATO summit taking place in Brussels there are meetings of EU leaders & the G-7.
NATO boosts defenses in Europe, says it faces ‘gravest threat’ to its security in decades
Gasoline prices have been fluctuating but are likely to keep moving sporadically higher & more drivers could pay over $5, even $6 a gallon for unleaded in the peak summer driving season. The national average for unleaded gasoline was $4.23 per gallon, down 5¢ from a week earlier & 10¢ below the recent all-time high. But analysts expect prices at the pump to start rising even more, with the jump this week in oil prices & the rising price of gasoline in the futures market. California drivers have been hardest hit, paying an average $5.88 per gallon of unleaded statewide, in part because of higher taxes & the unique blend of West Coast fuels, drivers in Los Angeles county are paying an average $6.03 per gallon. Nevada prices are averaging $5.17 per gallon, while Washington state's average is $4.72 per gallon. With the exception of Illinois, at $4.49, the lowest prices are in the Midwest & South. Prices in Texas & Iowa are averaging $3.88 per gallon. Ohio & Georgia are at $3.99 per gallon. Some states have rolled back gas taxes or are considering doing so. Connecticut plans to put a 3-month moratorium on its 25¢ per gallon gas tax starting Apr 1. Legislation has been proposed by Dems in the Senate & House to temporarily lift an 18.4¢ per gallon federal gas tax. Those proposals have been referred to committees. Gasoline prices have fallen from a record $4.33 nationally per gallon of unleaded on Mar 11. Gasoline prices declined as oil prices dipped, but crude has moved higher again & analysts say gasoline prices could too. How high prices at the pump can go is hard to say, particularly in the peak summer driving season between Memorial Day & the Fourth of July. That will depend on oil prices, which have been fluctuating as the world scrambles to replace Russian oil exports. Analysts said if the Ukraine conflict were to end, crude could fall sharply, but the situation is uncertain. For now, an estimated 2-3M barrels per day of Russian oil is off the market. Russia had also exported about 2.5M barrels a day of refined products, mainly to Europe, mm & the world is also making up for some of that lost supply.
Gasoline prices hit $6 in parts of the U.S. and summer driving isn’t here yet
Gold futures rose, settling at their highest level in about 2 weeks, as the US announced new sanctions on Russia for its ongoing invasion of Ukraine & investors monitored hawkish remarks by Federal Reserve officials. Gold for Apr rose $24 (1.3%) to settle at $1962 an ounce — at the highest most-active contract settlement since Mar 11. Meanwhile, the US announced new sanctions on Russia in response to its ongoing invasion of Ukraine, feeding haven demand for the precious metal. The US also made it clear that gold-related transactions with Russia's central bank are prohibited. Pres Biden met with leaders of the North Atlantic Treaty Organization (NATO), the first of a series of meetings with European allies & other world leaders in response to Russia's Feb 24 invasion of Ukraine. Fed officials this week have signaled they're prepared to raise interest rates even more quickly than previously expected. Fed Chair Jerome Powell on Mon said the Fed could move rates up by more than a qtr point at future meetings if deemed necessary. Other Fed officials have echoed Powell, pushing up expectations for a ½-point increase at the next policy meeting in May. Meanwhile, a reading on US durable goods orders showed a decline of 2.2% in Feb.
Gold prices settle at a roughly 2-week high as Russia-Ukraine war enters second month
Oil futures ended with a loss of more than 2%, a day after settling at their highest price in more than 2 weeks, with the US announcing fresh sanctions on Russia, as world leaders gathered to discuss actions against Moscow for its invasion of Ukraine. West Texas Intermediate crude for May fell $2.59 (2.3%) to settle at $112.34 a barrel. May Brent crude, the global benchmark, lost $2.57 (2.1%) to close at $119.03 a barrel. Brent & WTI both gained more than 5% to settle yesterday at their highest since March 8. Pres Biden met with European allies and other world leaders in Brussels in response to Russia's Feb 24 invasion of Ukraine. The Biden administration announced the rollout of more sanctions against Russia, including measures against 48 large Russian state-owned enterprises that are part of that country's defense-industrial base & produce weapons that have been used in the invasion. The US has already banned imports of Russian crude & the UK said it would phase out the import of Russia oil by the end of the year. Europe, meanwhile, has remained divided. Worries over the loss of Russian supply have contributed to market volatility, with crude jumping earlier this month to nearly 14-year highs before dropping sharply back below $100 a barrel & then bouncing higher. Worries over the loss of Russian supply have contributed to market volatility, with crude jumping earlier this month to nearly 14-year highs before dropping sharply back below $100 a barrel & then bouncing higher. Talk of progress around restoring the Iran nuclear deal, which would allow the country to resume crude exports, may have put some pressure on oil early today. Meanwhile, China continues to deal with the worst COVID-19 outbreak since the pandemic began, with lockdown once again put into effect & directly impacting industrial demand for petroleum products.
Oil prices end more than 2% lower as war-driven volatility continues
As usual, meetings of leaders were manly for photo ops & empty words. It's difficult to imagine that more sanctions on Russia will accomplish anything. After 1 month of fighting, the war continues. However GDP estimates continue to be revised lower & high inflation in the US drags on with no relief in sight over the coming months. While stock buyers were optimistic about the future thru the last hour of trading today, those with negative thoughts keep buying gold.
Dow Jones Industrials
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