Markets are continuing to ignore an escalation in Ukrainian tensions. Bloomberg reports that Ukrainian forces fired British cruise missiles at military targets inside Russia for the first time. UK approved the use of its missiles in response to Russia deploying North Korean troops in its war against Ukraine.
Additionally, the Washington Post reports anti personal mines were also approved for use by the Biden Administration.
This is in direct violation of the 1997 Convention on the Prohibition of the Use, Stockpiling, Production and Transfer of Anti-Personnel Mines and their Destruction as this is the international agreement that bans antipersonnel landmines. The US was not a signatory of this international agreement which was signed by over 90 countries.
The Washington Post further stated, however, in June 2022 – four months after the start of the war in Ukraine – the Biden administration pledged to limit the use of anti-personnel mines. In announcing its policy, the Administration vowed to curtail the use of anti-personnel mines worldwide. and said “that the US would no longer develop or export anti-personnel mines and would work to destroy all of its existing stockpiles.”
As noted, market complacency is great, perhaps partially the result of a communique from the recently concluded G-20 meeting that only offered tepid support of the conflict, support primarily concentrated in a humanitarian fashion.
I again ask if this is misplaced as often desperate people take desperate actions.
Comenting about the Treasury market, Treasuries fell after an auction of 20-yeasr bond drew tepid demand, suggesting that the recent surge in yields is not enough to entice buyers. It was the highest auction yield since April according to Bloomberg.
After the close NVDA posted results that exceed expectations but revenue forecasts “disappoints.” Shares are about 2% lower.
Will the shares move about 8% today as is suggested by Bloomberg, the options implied move for NVDA the day after its earnings are released? This would equate to a $300 billion swing in market value, bigger than all but 25 companies in the S & P 500?
Last night the foreign markets were mixed. London was up 0.38%, Paris down 0.11% and Frankfurt up 0.41%. China was up 0.07%, Japan down 0.85% and Hang Seng down 0.53%.
Futures are up about 0.25%. The 10-year is up 6/32 to yield 4.40%.
There is little reaction to Russian using an ICBM, a “further major escalation in hostilities and an alarming signal to Kyiv’s Western backers.
