Here are the most important news, trends and analysis that investors need to start their trading day:
1. US stock futures slightly higher
Traders work on the floor of the New York Stock Exchange (NYSE) in New York, March 11, 2022.
Brendan McDermid | Reuters
Stock futures rose slightly on Tuesday as investors continue to watch The Russian-Ukrainian war and the expectation of Wednesday’s expected increase in the interest rate of the Federal Reserve System. Falling oil prices supported stock futures.
The broad S&P 500 and the technology-focused Nasdaq tumbled on Monday for their seventh negative day of the last eight. With a 2% drop on Monday, the Nasdaq is firmly in the bear market, trailing about 22% from its November record. The Dow Jones index, which remained virtually unchanged on Monday, and the S&P 500 remain in correction territory.
2. Oil prices continue to fall, WTI below $100 per barrel
Dust flies around a crude oil pumping station and a gas flare at a drilling site in the Permian Basin in Loving County, Texas, November 25, 2019.
Angus Mordant | Reuters
Oil traded lower on Tuesday, continuing its recent downtrend after the Russian-Ukrainian war sparked shortage fears and sent prices soaring. Futures for West Texas Intermediate crude oil, the US oil benchmark, fell about 6% to trade below $97 a barrel, the lowest level since March 1. Just over a week ago, WTI briefly hit $130. On Tuesday, international benchmark Brent crude traded around $100.67 a barrel, down nearly 6% on the session. On March 7, Brent oil reached $139.13 per barrel, the highest price since July 2008. The decline in oil prices comes as Ukraine and Russia, a major energy producer, are holding peace talks, and a worsening Covid outbreak in China could dampen demand from the world’s second-biggest oil. economy.
3. Kyiv introduces a 35-hour curfew due to shells hitting residential buildings
A police officer guards the area around a building destroyed by shelling as Russia continues its advance into Ukraine, Kyiv, Ukraine March 14, 2022.
Gleb Garanich | Reuters
Also on Tuesday, Russian and Ukrainian officials plan to resume ceasefire talks after they were suspended on Monday. Chinese Foreign Minister Wang Yi also indicated that Beijing wants to avoid the impact of economic sanctions that the US has imposed on its ally Russia. A day earlier, the US and China held “intense” diplomatic talks. Washington has warned China that it could face sanctions if it helps Russia circumvent any US sanctions.
4. Chinese stocks fall; Covid outbreak getting worse
Flags of China and Hong Kong flutter as screens display the Hang Seng Index outside the Exchange Square complex, home of the Hong Kong Stock Exchange, on January 21, 2021 in Hong Kong, China.
Zhang Wei | China News Service via Getty Images
Chinese stocks sold off again on Tuesday as investors weighed in on a number of concerns, including potential delisting from US exchanges and a worsening situation with the coronavirus outbreak in major cities. The Hong Kong Hang Seng Index fell 5.72% to close at 18,415.08, the lowest close since February 12, 2016. The index fell 19% in March, its worst monthly performance since 2008, according to Reuters.
In mainland China, the Shenzhen index fell 4.36% to close at 11,537.24, while the Shanghai composite index fell nearly 5% to close at 3,063.97. On Monday, the indices fell by 3% and 2.6%, respectively.
After new health restrictions were put in place in Shanghai and Shenzhen’s technology hub in recent days, the city of Dongguan on Tuesday announced tougher measures to contain new cases, including shutting down production at industrial parks where Covid cases have been reported. China is grappling with the worst virus outbreak since the early days of the pandemic in 2020.
5. Tesla raises car prices in China and the US
Employees work at a Tesla Gigafactory in Shanghai, east China, 20 November 2020. US electric vehicle company Tesla built its first non-US Gigafactory in Lingang New District in 2019, with a design annual production capacity of 500,000 units.
Ding Ting | Xinhua News Agency | Getty Images
Just days after CEO Elon Musk warned due to the inflationary pressures its business is facing, Tesla has raised the prices of its electric vehicles in China and the US. These are two key markets for the world’s most valuable automaker. Tesla is raising prices on some cars for the second time in a week.
In other Tesla news, CNBC reported on Monday internal documents that showed the electric car maker has been buying aluminum from Russian company Rusal since late 2020. This revelation sheds light on the complex nature of supplier relationships during the war. The founder of Rusal is the Russian oligarch Oleg Deripaska, who fell under the sanctions.
– Chloe Taylor of CNBC, Eustans Huang and Laura Kolodny contributed to this report.
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