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Post: Friday - Russia invades the stock market. | Daily Delphi

BlogsPit Talk › Friday - Russia invades the stock market. March 14, 2014, 6:50 am

CALENDAR

7:30 AM CT
PPI for Feb
Prior 0.2% Forecast 0.2%
Core PPI for Feb
Prior 0.2% Forecast 0.1%
9:55 AM CT
University of Michigan Sentiment for March
Prior 81.6 Forecast 82.0

THURSDAY RECAP

Everyone wanted to limit their risk exposure yesterday. And there is plenty of risk in the market heading into the weekend. The major averages ended Thursday's session near their lows as world leaders upped the ante for Russia and data out of China showed continuing weakness The trouble is, the Russians have painted themselves into a corner and it is becoming more and more difficult to see how they can make a graceful exit. Sanctions of this scale and talk of war are never good for the markets but add the precarious global economic data we've seen so far in 2014 and traders are getting skittish.

TODAY'S ACTION

Asian markets suffered deep loses overnight and the European indices are down in early trade. Today Secretary of State John Kerry will meet with his Russian counterpart Sergey Lavor in London. That meeting will dominate today's trade. Crimea is set to vote on succesion from Ukraine this Sunday. A yes vote to leave Ukraine would leave the door wide open for Russia to annex the peninsula. Therein lies the rub. If the Russians decide annex Crimea the leaders of the West have promised a unified, quick and harsh response. That kind of talk isn't good for anyone. Look for investors to take off risk as we head into what promises to be a very interesting weekend. Trade wisely.


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