Dow went up 103, advancers slightly ahead of decliners & NAZ gained 271. The MLP index crawled up 1+ to the 211s & the REIT index fell 3+ to the 486s. Junk bond funds edged higher & Treasuries continued to be sold. Oil advanced 4 to the 103s & gold rose 12 to 1936 (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)
The EU is working on a new package of sanctions against Russia that is likely to restrict the leasing of airplanes & the import & export of products like jet fuel, steel products & luxury goods, sources with knowledge of the discussions said. However, the bloc remains divided over whether to extend those sanctions to energy imports — despite mounting evidence of war crimes committed by Russian forces in Ukraine. Ukraine's top prosecutor has said 410 bodies had been found in towns recaptured from retreating Russian forces around Kyiv as part of an investigation into possible war crimes. Over the weekend, various intl media organizations reported on the mass killings of civilians in the town of Bucha, a Ukrainian city close to the country's capital of Kyiv, which had been under Russian occupation until recently. The reports led to an array of calls from within the EU for the bloc to go further in punishing Moscow for its unprovoked invasion of Ukraine. The bloc is now working on a 5th package of sanctions against Russia with the new round of measures expected to be approved later this week. 2 EU officials said that a proposal for the next sanctions package includes airplane leasing, steel products, luxury goods & jet fuel. The package is still a work in progress & could change as talks continue in the coming days & ahead of a crucial meeting of EU ambassadors on Wed. One official added that “obviously, there is a big component missing,” in reference to the lack of measures on the Russian energy sector. Imposing an immediate ban on Russian gas, oil or even coal has been a topic of huge debate within the EU since Russia invaded Ukraine on Feb 24. While some nations are supportive of banning Russian energy, other EU countries argue that they are too dependent on Russian energy & they would hurt their own economies more than Russia's. France's pres, Emmanuel Macron, said that the EU should agree on restricting Russian oil & coal following the atrocities reported in Bucha. Poland, for example, announced last month that it would stop imports of Russian coal. However, there is a very vocal group of EU nations that are still against approving any energy sanctions. “We want to be, [in the] short time, less dependent on Russian energy imports to the European Union and Germany will support further sanctions on Russia,” German Finance Minister Christian Lindner said. “We have to put more pressure on Putin and we have to isolate Russia — we have to cut all economic relationships to Russia, but at the moment it is not possible to cut the gas supplies,” he added.
EU’s new Russia sanctions to likely include steel, luxury goods, jet fuel and more, sources say
The currently approved Covid-19 vaccines may need an update to ensure a high level of protection as the virus continues to evolve, according to the Food & Drug Administration. The FDA said scientists still don't entirely understand Covid variants & the effectiveness of the vaccines. For example, mutations to the spike protein, which is used by the virus to invade human cells, have reduced effectiveness of current vaccines. That's because today's Covid shots were developed to target the spike protein in the original strain of the virus that emerged in Wuhan, China in late 2019. The FDA's advisory committee of outside vaccine experts on Wed will discuss how the US can develop a transparent process to make recommendations about changing the composition of the current ones if needed. Pfizer (PFE) & Moderna (MRNA) are conducting clinical trials on vaccines based on the omicron variant, the dominant version of the virus worldwide. Omicron & its rapidly spreading subvariant BA.2 have numerous mutations that give them an enhanced capability to breakthrough the vaccines & cause infections that normally result in mild illness. The effectiveness of the 2 dose vaccines against mild illness from omicron dropped from 70% to just 10%, 25 weeks after the 2nd shot, according to the UK Health Security Agency. A 3rd dose increases protection to 75% for about 4 weeks, but it then declines to between 25-40% after 15 weeks. The effectiveness of the 2 vaccine doses against hospitalization from omicron dropped from 71% to 54% after 5 months. A 3rd shot increased protection to 91%, which then declined to 78% after 4 months. When the vaccines were first authorized in Dec 2020 they were 90% effective at preventing infections that resulted in symptoms. The FDA, in the briefing document, said it is impossible to predict which variant will become dominant & for how long, creating a practical limit to how often the vaccines can be modified. The drug regulator also said it needs to see clinical trial data before authorizing any changes in vaccine composition to ensure they are effective & do not raise safety concerns.
FDA says Covid vaccines may need to be updated to ensure high level of effectiveness against virus
Pres Biden called for evidence to be gathered to put Russian leader Vladimir Putin on trial for war crimes related to his nation's invasion of Ukraine. “He is a war criminal,” Biden said of Putin, on the heels of reports of mass killings of civilians by Russian-controlled troops in the town of Bucha, northwest of Ukraine's capital of Kyiv. “This guy is brutal, and what’s happening in Bucha is outrageous and everyone’s seen it,” Biden added, a day after video & still images revealed the town’s streets littered with dead bodies. “I think it is a war crime. ... He should be held accountable.” Biden also said he plans to slap additional sanctions on Russia for its conduct during the war. “I’ll let you know,” the pres replied when asked him the nature of those expected sanctions. Ukrainian Pres Volodymyr Zelenskyy earlier accused Russian forces of committing genocide, saying that Ukrainians are being “destroyed and exterminated.” Bucha's mayor has said about 300 residents of the town had been killed at the time that fighters from Chechnya controlled the area. Russia has denied allegations that its troops killed civilians in Bucha, with its Defense Ministry calling the claims a “provocation.”
Biden calls to put Putin on trial for war crimes over Russia killings in Ukraine
Gold futures edged higher, bouncing after last week’s
pullback, finding support from growing concerns over inflation, as
investors monitored developments in the Russia-Ukraine war & inflation
worries grow. The precious metal shook off pressure from a further rise in Treasury yields & a slightly stronger $. Gold for Jun rose $10 (0.5%) to settle at $1934 an ounce after falling 1.6% last week. Gold may also be finding some haven-related buying
interest after a weekend of grim headlines & images out of Ukraine as
Russian forces pulled back from the capital, Kyiv. So far, the bodies of 410 civilians have been found in towns near the capital
that were recently retaken from Russian forces, said Ukraine's
prosecutor-general, Iryna Venediktova. The images prompted several
European leaders to call for tougher sanctions against Moscow. Gold gained ground, even as Treasury yields resumed a push to the upside & the ICE US Dollar,
a measure of the currency against a basket of 6 major rivals,
edged up 0.4%. Higher yields can be a negative for
gold, raising the opportunity cost of holding nonyielding assets. A
stronger $ can also be a negative for commodities priced in the
unit, making them more expensive to users of other currencies.
Gold finishes higher on inflation concerns to recoup some recent losses
Oil futures settled higher, with US prices back above the $100 mark after posting the biggest weekly drop in 2 years, as European leaders called for additional sanctions against Moscow following images over the weekend showing evidence of Russian atrocities in Ukraine. West Texas Intermediate (WTI) crude for May rose $4.01 (4%) to settle at $103.28 a barrel after settling Fri at $99.27, the lowest since Mar 16. Jun Brent crude, the global benchmark, rose $3.14 (3%) at $107.53 a barrel. WTI, the US benchmark, fell 12.8% last week, while Brent dropped 11.1%, the biggest weekly percentage declines for both since late Apr 2020 when oil briefly went below zero. The weekend saw grim headlines & images emerge out of Ukraine as Russian forces pulled back from positions near Ukraine’s capital, Kyiv. The oil market was volatile last week, slumping as the US announced the release of 1M barrels a day of crude for the next 6 months from its Strategic Petroleum Reserve, while the Intl Energy Agency on Fri said it would release additional barrels. Saudi Aramco announced today that it raised its May oil prices for customers in all regions, with prices for the 4 types of oil it sells to the US up by $2.20 a barrel from Apr. Meanwhile, rising COVID-19 cases in China has raised expectations for a decline in energy demand. The country last month locked down Shanghai, its largest city & financial capital, as part of its zero-COVID policy. Investors were also weighing the announcement late Fri of a 2-month truce in Yemen between a Saudi-affiliated coalition & Iran-backed Houthi rebels. Crude-oil volatility had been amplified in recent weeks amid Houthi drone attacks on Saudi oil facilities.
U.S. oil prices settle back above $100 as Europe weighs additional Russia sanctions
Tech shares on NAZ were popular today, but the rest of the stock market was little changed. There was a little buying in the PM which took the Dow into the black. While there is plenty of confusion about the war in Ukraine, the big picture suggests Russia is involved in war crimes. Popular inflation data for Mar is coming next week & that should be dreary once again.
Dow Jones Industrials
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