EU and US Futures are up sharply after the recent drops. NASDAQ + 1.10%, S&P 500 + 0.80%, DAX +1.20%, FTSE MIB +1.20%, at writing.
Tensions abate after Russia decides to send its troops to the separatist territories of Ukraine. The response of Western governments, for now, has been limited to announcements of non-disruptive sanctions for the Moscow economy.
Diplomacy still does not seem to have been sidelined, the meeting between the foreign ministers of Russia and the United States has been skipped, but as we know, in these cases, the decisions can change quickly.
The good news in the US was from yesterday's macro data. In February, the Conference Board index relating to US consumer confidence stood at 110.5 points, above analysts' expectations (110 points) and up from the previous figure (revised downwards) to 111.10 points. January.
Average house prices in the twenty reference metropolitan areas for the S&P CS index have risen more than expected, year on year, the positive change is + 18.5%.
Markit's PMI manufacturing index rose to 57.5 points from 55.5 in January, and the consensus was 56. The non-manufacturing index came in at 56.7 from 51.2, much better than expected.
In Europe, yesterday's data was excellent for the DAX. The Ifo index, which measures the confidence of companies, stood at 98, clearly above forecasts.
Hot Stocks and Instruments
DAX: Excellent figures for Germany. The Ifo index, which measures companies' confidence, stood at 98, clearly above forecasts.
Stellantis (NYSE:STLA) presented the accounts for the second semester. Operating profit amounted to 9.9 billion euros, with a margin of 12.1%. The consensus was much lower, at 6.6 billion, with a margin of 9%.
Cash flow, amounting to 6.1 billion euros, was also much better than expected. The company expects an operating margin of over 10% in 2022, more or less in line with expectations.
Conclusion
The situation in Eastern Europe is overall better than expected. Putin has clearly stated that he does not intend to create a Russian Empire. This means that, as expected, his mini invasion will not go beyond the Donbas.
The sanctions are light, and the diplomatic path is always open. As mentioned in previous articles, I don't expect any conflicts, and the recent drops are an opportunity to buy. The markets are already catching up.
In a few weeks and with the end of the restrictions from COVID in the world, the markets could approach new records in the coming months. Regarding Stellantis, as mentioned in previous articles, the situation was already good, with an excellent prospect of growth for profits. As I expected, today's data is excellent. The stock is worth $20.