In overnight news, reports said Russia has
retaliated against the West’s sanctions by imposing its own: banning
imports of many food items from the West. The Russia-Ukraine
territorial crisis and the sanctions imposed have caused renewed
geopolitical uncertainty this week, which has helped to pressure world
stock markets. Gold posted solid gains and U.S. Treasury bond futures
hit a contract high Wednesday. Meantime, the U.S. dollar index
Wednesday hit a nine-month high. These markets were supported on
safe-haven demand amid the heightened geopolitical concerns this week.
There is a European Central Bank monetary policy meeting Thursday, including a press conference from ECB president Mario Draghi. The ECB did not make any major policy moves. However, as usual, the market place wants to hear Draghi’s comments, which may provide clues on futures ECB action.
The sell-offs in the U.S. stock indexes recently are the strongest technical evidence yet that the indexes have put in at least near-term market tops. How the stock indexes close on Friday—near their weekly highs or near their weekly lows—will provide more technical evidence on whether that major bull run in the U.S. stock market has finally come to an end.
