This is 9:31 a.m. EST on the 16th of the United States. All three major index futures rose. As for the parts that could move investor sentiment, first of all, there was news that Russia and Ukraine are making some progress in the armistice negotiations. Russian Foreign Minister Sergei Lavrov said in an interview with local media that the neutralization of Ukraine is being seriously discussed and that negotiations are not easy, but there is hope for a settlement nonetheless. There was also a position that said that there was.
Also, one of the things investors are curious about about Russia is the global economic impact of Russias national default. In fact, as Russia announced that it would pay its government bonds in rubles instead of dollars, it should be noted that while news about a substantial default is coming out, Wall Street believes that the Russian default itself will not have a huge immediate impact on the US stock market. In this regard, oil prices, which fell sharply yesterday, are rising slightly. West Texas Intermediate Oil WTI is trading at $97.4 a barrel, up 1% from the previous trading day.
The results of the FOMC at 2pm local time may also have an impact on the market today. First of all, the market believes that a 0.25% increase in the base rate at this FOMC is final. What matters is what additional messages Chairman Jerome Powell delivers in the FOMC statement and press conference. Looking back at the FOMC in January, just before, the Fed made a monetary policy decision that did not deviate much from market expectations, but the market fluctuated significantly on that day. It was because then Chairman Jerome Powell strongly signaled a message that he would focus on managing inflation, even if he had to bear the shock of the asset market to some extent. It remains to be seen how the markets curiosity about the timing of quantitative tightening after the rate hike will be resolved. Todays market is likely to see some volatility from the Fed until the close of the market. We will also be broadcasting a live broadcast of the Fed Chairman Jerome Powells press conference locally. The 10-year U.S. Treasury yield has continued to rise at an annual rate of 2.18%.
In todays flea market, large-cap stocks such as Tesla, Apple, and Microsoft are showing an even upward trend. If you look at the group of stocks that move characteristically, they are Chinese Internet companies listed on the US market, such as Alibaba and Pinduo Duo, which also fell sharply recently. Chinas Deputy Prime Minister Liu He made a remark to help these companies that have recently fallen. He said that negotiations with US and Chinese regulators regarding Chinese companies listed on the New York Stock Exchange are making progress, and concrete cooperation could be launched soon. He also announced a policy to implement policies that can act as a positive factor for Chinese companies. Alibabas stock price rose 19% in the free market, and Pin Duo Duos stock rose more than 35%.