Dow dropped 209, decliners only slightly ahead of advancers & NAZ was off 124. The MLP index jumped 7+ to the 214s & the REIT index fell 2+ to the 254s. Junk bond funds remained weak & Treasuries were heavily sold again, raising Treasuries yields. Oil skyrocketed 9+ to an astounding 129 & gold surged 70 to 2066 (near record levels).
AMJ (Alerian MLP index tracking fund)
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Pres Biden is expected to announce a ban on Russian oil imports to the US amid bipartisan pressure continues its invasion of Ukraine for a 13th day. He will announce "actions to continue to hold Russia accountable for its unprovoked and unjustified war on Ukraine." As the war in Ukraine rages on, Americans are facing the surge in gas prices & the Biden administration is facing calls from Reps & Dems in Congress, as well as Ukrainian Pres Volodymyr Zelenskyy to ban imports of Russian oil & increase domestic energy production. Zelenskyy, called for "boycotts" of Russian oil imports to the US & European countries. And Secretary of State Antony Blinken said Sun that the administration is speaking with partners & allies "to look, in a coordinated way, at the prospect of banning the import of Russian oil, while making sure there is still an appropriate supply of oil on world markets."
Biden to ban Russian oil imports to hold Putin 'accountable'
Soaring commodity prices, sweeping financial sanctions & the potential for a ban on energy imports from Russia after it invaded Ukraine are threatening to hobble a global economy still weakened by the Covid-19 pandemic. They are also complicating the task of central banks that had been preparing to phase out easy money. On both sides of the Atlantic, inflation is at levels that haven't been seen for decades & still rising. Global stock markets are wilting & the $ is surging against other currencies as investors rush for the safety of US assets. Economists are increasingly warning of a possible bout of stagflation, particularly in Europe, a situation of high inflation & low growth that afflicted major economies during the 1970s. Back then, central banks responded to a surge in oil prices with easy-money policies that caused a wage-price spiral. Now, some central banks might give up on their plans to increase interest rates after keeping them down during the pandemic. At rate-setting meetings' billion cubic meters of fossil gas use, which is equivalent to the volume imported from Russia in 2021. Nearly 2/3 of that reduction can be achieved within a year, ending the EU’s overdependence on a single supplier, the commission said. As part of the updated plan, the commission wants EU nations to fill their gas storage by at least 90% come Oct.1 every year. In addition, the institution added that state aid rules could be relaxed to support companies facing high energy prices.
Global economy braces for impact of Russia’s War on Ukraine
The EU presented a new plan to reduce its dependency on Russian energy, amid Moscow's invasion of Ukraine, sky-high prices & a potential embargo of Russian crude. The European Commission, the exec of the EU, wants to cease its buying of fossil fuels from Russia before 2030. And it has now presented a new pledge to reduce its purchases of Russian gas by 2/3 before the end of the year. This would be achieved by diversifying its suppliers, increasing renewable hydrogen production & improving energy efficiency in households, the commission said. The 27-member bloc has been heavily criticized for being too reliant on Russia for energy, especially in the wake of Moscow's unprovoked attack on Ukraine.
EU pledges to cut Russian gas imports by two-thirds before the end of the year
It is useless trying to make sens out of this chaotic market. Gold & oil are near record levels while investors are selling stocks. The bulls remain in hiding.
Dow Jones Industrials
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