Stocks Extend Gains On Putin-Scholz ‘Diplomacy’ Headlines

March 9, 2022   |   Tags:
Stocks Extend Gains On Putin-Scholz 'Diplomacy' Headlines

Update (1100ET): AFP is reporting that, according to the Kremlin, Russian President Putin and Germany's Scholz are discussing 'diplomatic' efforts to settle Ukraine conflict.

This has prompted the algos to search for more stops above yesterday's highs...

Nasdaq is now up 3% and gold and crude are holding off the lows of the day for now.

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US equity futures are surging ahead of the open following comments from Ukrainian President Zelensky's Deputy Chief of Staff Ihor Zhovka that he is "ready for a diplomatic solution."

Zhovka said that the country is ready to discuss neutrality, needs a security guarantee, but confirmed that Ukraine "won't trade a single inch of territories," and is insisting on a clear response to its EU application.

Notably stocks surged to yesterday's highs, but did not extend gains further (for now)...

Crude is getting clobbered as geopolitical risk premia are discounted...

And safe havens are being dumped with gold briefly back below $2000...

JPMorgan noted that while Ukraine is no longer insisting on NATO membership, EU membership would give similar protections.

Of course this is the start of negotiations so no matter how distasteful it is to Putin, there may still be a way forward.

Tyler Durden Wed, 03/09/2022 - 10:58