With the Ukraine-Russia conflict intensifying again, investors have shifted to a more defensive stance, extending yesterday’s rally in precious metals. Gold is up 1.0% while Silver is up 0.9%. Commodities are struggling today with US Crude Oil down 0.6% and Copper down 0.3%.
Interestingly, Bitcoin, usually seen as an indicator of risk appetite, is up 1.2% at a new all-time high above $92,500 suggesting it may be attracting capital seeking alternative markets or continuing its post-US election run. The US 10-year treasury note yield has slipped back under 4.0%. US bonds may also be attracting capital seeking a saft haven.
Stocks, on the other hand, are starting to sell off. US index futures are down 0.3%-0.5%. Continental European bourses closer to the conflict are getting hit harder with Frankfurt down 1.2%, Paris down 1.4% and Milan down 2.2%. London is down 0.5%.
Earnings season for US retailers gets underway in earnest today with results from Walmart ($0.58 vs street $0.53, up 2.9% premarket) and Lowes ($2.89 vs street $2.82) George Weston also beat the street ($3.56 vs street $3.44).
Today’s economic news was disappointing. Canada consumer prices (2.0% vs street 1.9% and previous 1.6%) rose more than feared, suggesting that inflation may be bottoming out and starting to accelerate again. US housing starts (1.311M vs street 1.33M) landed short of expectations.