Global Market Trends (14th Feb., 2022)

Earning Reports, Among the companies reporting are two Dow members – computer networking firm Cisco Systems and retailing giant Walmart.

Other names to watch include mass media and entertainment company ViacomCBS, graphics chip maker Nvidia, online lodging marketplace Airbnb, food processor Kraft Heinz and agricultural machinery maker Deere to name a few.

Geopolitical risks, On Wall Street, the benchmark S&P 500 index tumbled 1.9% on Friday after the White House encouraged Americans to leave Ukraine within 48 hours. Other governments including Russia were pulling diplomats and their citizens out of the country.

Russia is one of the biggest oil producers. Any military action that disrupts supplies could send shockwaves through energy markets and global industry.

"Markets are belatedly waking up to the geopolitical risks posed by Russian military action against Ukraine," Rabobank said in a report.

Investors already were on edge about Federal Reserve plans to wind down economic stimulus to cool inflation that is at a four-decade high and about how quickly Europe and other central banks would follow.

Treasury bonds, Investors moved money into Treasury bonds, gold and other assets seen as safe-havens in view of rising geo-political risks. The market price of a 10-year Treasury rose, pushing down its yield, or the difference between the day's price and the payout if held to maturity, to 1.91% from Thursday's 2.03%.

Treasury prices had been falling on expectations the Fed will raise interest rates as many as seven times this year. If the Fed succeeds in cooling inflation, that would increase the buying power of the payout from bonds, making them a more attractive investment.

Asian stock markets fell Monday and oil prices rose amid concern about a possible Russian invasion of Ukraine.

Tokyo's benchmark index fell by an unusually wide daily margin of 2.1%. Shanghai, Hong Kong and Seoul also retreated. The Nikkei 225 in Tokyo was down 2.1% to 27,117.18 at midday after being off 2.6% earlier.

The Bank of Japan made an offer for unlimited government bond purchases on Monday, moving to curb a surge in long-term interest rates. Japan’s central bank set the interest rate for purchasing 10-year government bonds at 0.25%. The offer drew no bids but still had the effect of lowering interest rates and likely reassured investors of continued support for the markets.

The Hang Seng in Hong Kong lost 1.2% to 24,594.21. The Kospi in Seoul retreated 1.2% to 2,714.33.

The Shanghai Composite Index shed 0.6% to 3,441.23 while Sydney's S&P-ASX 200 gained 0.2% to 7,234.20.

Commodities, in energy markets, benchmark U.S. crude rose $1.31 to $94.41 per barrel in electronic trading on the New York Mercantile Exchange. The contract added $3.22 on Friday to $93.10. Brent crude, the price basis for international oils, advanced $1.$1.04 to $95.48 per barrel in London. It gained $3.03 the previous session to $94.44.