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The
mood remained dour across global stock markets as Brent crude
jumped to near eight-year highs and metal prices rallied after
Western sanctions disrupted transport of commodities exported by
Russia.
Wall Street indexes closed sharply lower on Tuesday with
financial stocks bearing much of the damage as investors weighed
the impact of harsh sanctions against Russia over its invasion
of Ukraine.
Morgan Stanley rose 1.0% in premarket trading to lead gains
among the big banks after two days of sharp declines. Shares of
energy companies resumed their march higher as oil prices spiked
above $110 a barrel. [O/R]
The S&P 500 banks index is down 7% so far this week as U.S.
Treasury yields dropped amid a flight to safe-haven debt, while
expectations of aggressive policy tightening by the Fed appeared
to ease. [US/]
Powell will testify at 10 a.m. ET (1500 GMT) before the U.S.
House of Representatives Financial Services Committee and his
comments on the economy in nearly five weeks will confront a
situation that has become markedly more complex since January.
"Lawmakers of both parties will grill him about soaring prices,
the latest business surveys and energy prices suggest there's
more inflation in the pipeline, and yet the markets are dialing
back bets for tightening," wrote Marios Hadjikyriacos, senior
investment analyst at online broker XM in a note.
"Someone has to be wrong here. We'll find out today what really
scares the Fed - geopolitical uncertainty or spiraling
inflation."
Traders now see a 5% probability of a 50 basis point rate hike
by the Fed at its March meeting. [IRPR]
Russia said its forces took control the first sizable city,
seizing Kherson, in south Ukraine, as fighting raged around the
country. Kremlin said its delegations are ready to hold a second
round of talks with Ukraine.
Companies around the world announced they were severing ties
with Russia - Boeing Co suspended maintenance and technical
support for Russian airlines, Apple Inc stopped sales of iPhones
and other products and oil major Exxon Mobil said it would exit
the country.
At 06:20 a.m. ET, Dow e-minis were up 172 points, or 0.52%, S&P
500 e-minis were up 23.75 points, or 0.55%, and Nasdaq 100
e-minis were up 99 points, or 0.71%.
Among other stocks, Nordstrom Inc surged 30.9% after the
department store chain forecast upbeat full-year revenue and
profit.
Hewlett Packard Enterprise gained 5.8% after the IT and hardware
firm raised its FY22 profit outlook due to robust demand and
profitability.
(Reporting by Devik Jain in Bengaluru; Editing by Saumyadeb
Chakrabarty)
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