Ukrainian officials have given pro-Russian separatists a strict
deadline to disarm or face a "full scale anti-terrorist
Ahead of the Monday morning deadline, the United Nation's
Security Council called an emergency meeting on Sunday night to
discuss the rising tension between Moscow and Kiev.
With between 35,000 and 40,000 Russian troops stationed at the
Ukrainian border and a further 25,000 in recently annexed Crimea,
markets have been jittery as the prospect of a military clash
between the two nations becomes more and more likely.
Most expect that the US and Europe will slap Moscow with further
sanctions if the crisis continues to escalate.
In other news around the markets:
Japanese Prime Minister Shinzo Abe and Bank of Japan Governor
Haruhiko Kuroda have decided to hold regular meetings this month,
something many have taken as a sign that Abe may be concerned about
the yen's recent performance. Though Kuroda has been decidedly
bullish about the nation's economy and expects that Japan will meet
its two percent inflation target by April next year, the revival of
regular meetings between the two has reignited speculation that the
bank could provide additional stimulus. Amazon.com has announced
that it is planning to release a smartphone during the second half
of 2014 as the company tries to push into the hardware space.
According to the Wall Street Journal, people close to the company
have said it hopes to introduce the phone, which may have screen
capable of producing 3-D images without the use of glasses, in June
and begin shipping it by the end of September. The International
Monetary Fund's policy committee wrapped up its weekend meetings
with stronger calls to combat falling inflation. The fund has said
that downward price pressure has been a key factor dragging down
the global recovery. The warnings are mostly targeted at the
eurozone, where inflation has dropped to just 0.5 percent, far
below the ECB's 2 percent target. In an attempt to trim its
expenses and adjust to evolving regulations and loan demand,
Citigroup cut between 200 and 300 employees last week. The
company's cuts will make up about 2 percent of the global market
and included Steve Prince, younger brother to the company's former
Chief Executive Charles Prince.
Asian markets were mostly lower with the exception of the
Shenzhen composite, which gained 0.42 percent and the Hang Seng
index, which was up 0.06 percent. The Japanese NIKKEI lost 0.36
percent, the Shanghai composite was down 0.12 percent and
Australia's ASX 200 lost 1.28 percent.
European markets were down across the board; the UK's FTSE lost
0.61 percent and the eurozone STOXX 600 was down 0.69 percent. The
German DAX fell 0.79 percent and France's CAC 40 was down 0.64
Energy futures rose following news that problems in Ukraine were
escalating. Brent futures gained 0.48 percent and WTI futures were
up 0.42 percent. Gold and silver rose by 0.62 percent and 0.47
percent respectively, but industrial metals were mixed with zinc
down 0.61 percent but copper up 0.13 percent.
The euro slid as the ECB attempted to verbally devalue the
currency. The euro lost 0.32 percent against the dollar, 0.31
percent against the pound and 0.36 percent against the yen
following the remarks. The dollar gained 0.23 percent against the
franc and remained steady against the yen and the pound.
Notable earnings released on Friday included:
Wells Fargo & Company (NYSE:
) reported first quarter EPS of $1.05 on revenue of $20.84 billion,
compared to last year's EPS of $0.92 on revenue of $21.26 billion.
JP Morgan Chase & Co (NYSE:
) reported first quarter EPS of $1.28 on revenue of $22.99 billion,
compared to last year's EPS of $1.59 on revenue of $24.85 billion.
Fastenal Company (NASDAQ:
) reported first quarter EPS of $0.38 on revenue of $876.50
million, compared to last year's EPS of $0.37 on revenue of $806.33
Stocks moving in the Premarket included:
The Coca-Cola Co (NYSE:
) was up 0.96 percent in premarket trade after gaining 1.07 percent
last week. Carnival Corp (NYSE:
) was down 1.38 percent in premarket trade after losing 1.04
percent on Friday. Johnson & Johnson (NYSE:
) lost 0.42 percent in premarket trade after falling 1.57 percent
over the past five days. Bank of America Corp (NYSE:
) fell 0.38 percent in premarket trade after losing 5.68 percent
last week. Citigroup Inc. (NYSE:
) was down 0.26 percent in premarket trade after losing 1.19
percent on Friday.
Notable earnings releases expected on Friday include:
Pinnacle Financial Partners, Inc. (NASDAQ:
) is expected to report first quarter EPS of $0.45 on revenue of
$58.52 million, compared to last year's EPS of $0.39 on revenue of
$54.66 million. Citigroup Inc. (NYSE:
) is expected to report first quarter EPS of $1.18 on revenue of
$19.61 billion, compared to last year's EPS of $1.23 on revenue of
$20.49 billion. J.B. Hunt Transport Services, Inc. (NASDAQ:
) is expected to report first quarter EPS of $0.66 on revenue of
$1.42 billion, compared to last year's EPS of $0.61 on revenue of
Friday economic calendar will be relatively quiet with releases
including US retail sales, eurozone industrial production, Italian
CPI, and the Reserve Bank of Australia's meeting minutes.
For a recap of Friday's market action, click .
Tune into Benzinga's pre-market info show with Dennis Dick and
© 2014 Benzinga.com. Benzinga does not provide investment
advice. All rights reserved.
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