U.S. equity futures and markets around the world are climbing after Russian President Vladimir Putin said his country would only use force in Ukraine as a last resort. The statement is being portrayed as an indication that the crisis will ease, and some believe that it could pave the way for negotiations. Futures are indicating not only a recouping of yesterday’s losses but additional gains as well. The CBOE Volatility Index (VIX) sits at $14 from Friday’s close but we should see that move sharply higher. Traders will be buying option protection from the start of trading at 8:30 am CT. The ‘fear gauge’ has traded in a tight range recently and over the last year has not traded outside of $22 to the upside or $11 to the downside.
Treasury yields jumped higher as Ukraine tensions eased. The 10-year rate rose to 2.66% after hitting below 2.6% yesterday. Signs Russia is de-escalating the situation, having ordered troops in the military exercises back to base. Putin also indicated there's no need to use military force for now. Risk markets are rebounding with the Euro-zone index up over 2.4%. Trades will keep an eye on the situation in the Ukraine as they await Friday's February employment report, as well as the ECB's policy decision on Thursday. Today's calendar is light with only the only data release is the weekly chain store sales report. Today’s scheduled Senate confirmation hearings of Fed nominees Fischer, Powell and Brainard were postponed due to weather.
Stock Stories:
Qualcomm (QCOM) –Chipper – The technology chip-maker announces a $5B increase in its stock repurchase authorization. The company also increased its quarterly dividend by 20%. Investors are cheering the decision as the shares are up 3% ahead of the opening bell.
Major Economic Reports:
6:45 am CT – GS Store Sales – up 0.3% for the week
