• We should call this morning’s market move the relief rally that wasn’t. Markets are barely in recovery mode after President Biden and President Putin agreed to a summit on Ukraine arranged by the French President Macron. That follows last Friday’s reports of the Kremlin’s puppet regimes in Luhansk and Donetsk stepping up preparations for a fake casus belli that would ‘justify’ Russian intervention in Ukraine.
  • Russia’s main equity market is up more than 1 percent this morning. However, the trend remains bearish so to say, with the Micex down more than 10 percent for the year and trading very much in bear market territory (down 30 percent from the August 2021 peak). Asian equities are mixed, with only Australian shares rising marginally but with Japanese and Chinese markets suffering losses of nearly 1 percent. S&P 500 futures are trading up 60 points, trading at 4,373 last. Note that US markets are closed for a holiday today.

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