Yesterday, a technical rebound gained momentum during the session after Zelensky’s comments suggesting that Ukraine was ready to take a neutral stance towards NATO, subject to the preservation of its territorial integrity. At the same time, rumors began to circulate about the United Arab Emirates' plans to increase oil production, which caused the price of oil to fall. This double trigger of war and oil has awakened the libido of investors, who are often full of FOMO, (fear of missing out).

This strong reaction to rumors confirms the nervousness of financial markets, which still remain far below their best levels of the year on equities. Russia's aggression against Ukraine will have lasting consequences, considerably reshaping international relations, and therefore the economy, even if progress is made in the coming days on resolving the conflict.

While the Ukrainian and Russian foreign ministers met today in Turkey to resume talks, with no results, the fighting continues on the ground. And the EU is starting a two-day summit whose stated objective is to rethink the autonomy of the old continent. In addition, new figures released today show U.S. inflation was up to a 40-year high of 7.9% in February, boosted by higher commodity prices linked to Russia’s invasion of Ukraine. This was in-line with expectations, and followed a 7.5% jump in January. The consumer price index increased 0.8% last month after gaining 0.6% in January. This sent Wall Street in the red.

Another report from the Labor Department showed initial claims for state unemployment benefits rose 11,000 to a seasonally adjusted 227,000 for the week ended March 5, in line with expectations.

 

Economic highlights of the day:

The ECB had a meeting today. It expects GDP to grow by 3.7% this year, compared to the 4.2% expected in the last projections, while price increases are expected to reach 5.1%, compared to the 3.2% expected so far. In the United States, weekly unemployment figures and inflation for February are the main indicators.

The dollar is up to EUR 0.9060. The ounce of gold is back down to USD 2002. Oil fell yesterday, while remaining high, with North Sea Brent is at USD 116 and US light crude WTI at USD 112. US debt yields rise sharply to 1.94% on 10-year, and the Bund takes 10 points to 0.22%. Bitcoin falls back to USD 38,950.

 

On markets :

* Amazon - The online retail giant announced Wednesday that its board of directors had approved a 20-for-one stock split for the group starting in June, as well as a new $10 billion share buyback plan. Amazon shares jumped 6.2 percent in premarket trading.

* Tesla - The U.S. automaker announced Wednesday an increase in its prices, ranging from $1,000 to about $1,500 for some copies of its Model Y and Model 3 produced in China and the United States.

* The Boeing Company - The U.S. Civil Aviation Authority (FAA) announced Wednesday it is finalizing three safety guidelines for some grounded Pratt & Whitney 4000-powered Boeing 777s so they can take off again.

* Alphabet - YouTube and Google Play, the video service and online app store, respectively, of Alphabet subsidiary Google, announced Thursday that all Russian-based payment services on both platforms have been suspended due to the Russian invasion of Ukraine.

* Citigroup - The U.S. bank said Wednesday it is operating its consumer business in Russia on a "smaller basis" following the Russian invasion of Ukraine.

* Caterpillar in turn announced Wednesday the suspension of operations at its plants in Russia in response to the Russian offensive in Ukraine.

* Delta Air lines - A spokesman for Air France-KLM said Thursday that the Franco-Dutch group, Delta Airlines and Virgin Atlantic were determined to forge closer ties with the new Italian carrier ITA Airways (formerly Alitalia).

* JD.Com - China's Wall Street-listed online shopping group reported better-than-expected quarterly revenue on Thursday but a group share net loss of 5.2 billion yuan compared to a profit of 24.3 billion yuan a year ago. The share price fell by 5.2% in pre-market trading.

 

Analyst recommendations:

  • Asana: JPMorgan cuts recommendation to underweight from neutral, price target to $32 from $66.
  • Avista: Mizuho Securities starts coverage at neutral with $47 price target.
  • Broadcom: DA Davidson adjusts price target to $710 from $683; buy/add rating kept
  • British American Tobacco:  Jefferies considers the stock attractive and recommends it with a Buy rating. The target price is unchanged at GBp 3900.
  • Cisco Systems: Wells Fargo Securities downgrades to equal-weight from overweight. PT up 16% to $65.
  • Eli Lilly: Daiwa Securities initiated coverage with a recommendation of outperform. PT up 8.8% to $286.
  • Experian: Liberum starts tracking as Buy, targeting GBp 3700.
  • Federal Realty Investment Trust: Truist Securities adjusts price target to $128 from $130, reiterates hold rating.
  • KB Home: J.P. Morgan upgrades to overweight from neutral. PT up 34% to $51.
  • Meritage Homes: J.P. Morgan downgrades to neutral from overweight. PT up 15% to $111.
  • Mettler-Toledo: Goldman Sachs downgrades to sell from neutral. PT down 11% to $1,240.
  • Molten Ventures: Jefferies upgrades from hold to buy targeting GBp 1000.
  • NetApp: Barclays upgrades to overweight from equal-weight. PT up 26% to $102.
  • Pilgrim's Pride: BMO Capital Markets upgrades to outperform from market perform. PT up 31% to $30.
  • Renewable Energy Group: Cowen downgrades renewable energy group to market perform from outperform.
  • Savills: Numis Securities upgrades to buy from add. PT up 32% to 1,562 pence.
  • Stagecoach: Liberum upgrades from buy to hold, targeting GBp 105.
  • Toll Brothers: J.P. Morgan upgrades to neutral from underweight. PT up 12% to $58.
  • Yandex: J.P. Morgan cut its recommendation to neutral from overweight. PT up 37% to $26.