Although Russian President Vladimir Putin showed no signs of
letting up on his military initiatives on Monday as he amassed
armored vehicles in Ukraine's Crimean peninsula, he has since
ordered troops near Ukraine border to return to bases.
Ahead of this initiative, investors had pulled money from stock
markets and fled to perceived safer bets like oil and gold.
Russia's markets were also suffering as the Obama administration
began the process of isolating Russia as part of a non-military
response to Putin's declaration of war.
The US withdrew military cooperation with Russia and canceled
negotiations on increasing trade and investment between the two
nations. The US State Department issued a warning to Russia saying
that if Putin did not pull back, the US and its European allies
would punish the nation economically.
In other news around the markets:
The Obama administration is set to release its budget proposal
later on Tuesday, which is expected to require $4 trillion in
spending. Among other things, the proposal implements higher tax
credits for childless workers, a higher minimum wage and reduces
tax credits for Americans in higher income brackets. The Chinese
government is set to announce its official GDP target on Wednesday.
With the most recent economic indicators showing that the Chinese
economy has slowed, policymakers are stuck between setting a high
target and delivering the message that the nation is focused on
growth at all costs; or a lower goal which would indicate that the
nation's focus will be on lowering debt and fixing structural
problems. Local media has reported that the goal is likely to be
7.5 percent, the same as last year's target. Japan's Financial
Services Agency is leaning on regional banks to consolidate, and to
do so quickly. A process which was expected to take decades will
likely be accelerated as officials from the FSA meet with the
nation's more than 100 regional banks to get details on their
long-term strategy and push banks without an airtight plan to speed
up the consolidation process. Recent US data helped assuage worries
that the nation's economy was faltering following a spate of poor
data. US factory activity recovered in February after falling to an
eight month low and another report showed consumer spending was
also improving. The data may encourage the US Federal reserve to
move forward its tapering plans as the US economy gains momentum.
Asian markets were mixed on Tuesday; the Japanese NIKKEI gained
0.47 percent and the Hang Seng index was up 0.87 percent. However,
China's Shanghai composite was down 0.18 percent and the South
Korean KOSPI lost 0.54 percent.
Europe's markets were down across the board; the UK's FTSE lost
1.49 percent and the eurozone's STOXX 600 was down 3.02 percent.
The German DAX lost 3.44 percent, France's CAC 40 fell 2.66 percent
and the Spanish IBEX was down 2.33 percent.
Energy futures leveled off on Tuesday morning with Brent futures
down 0.61 percent and WTI futures down 0.80 percent. Gold
lost 0.68 percent but silver gained 0.18 percent. Industrial metals
were down across the board with tin posting the largest loss, down
The euro remained above $1.37 and gained 0.20 percent on Tuesday
morning. The pound was up 0.08 percent against the dollar and the
Australian dollar gained 0.09 percent against the greenback. The
dollar gained 0.39 percent against the yen and lost 0.74 percent
against the Russian ruble
Notable earnings released on Monday included:
Stratasys, Inc. (NASDAQ:
) reported fourth quarter EPS of $0.50 on revenue of $155.10
million, compared to last year's EPS of $0.40 on revenue of $71.15
million. Rockwood Holdings, Inc. (NYSE: ) reported fourth
quarter EPS of $0.53 on revenue of $347.00 million, compared to
last year's EPS of $0.47 on revenue of $829.00 million. QR Energy,
LP (NYSE: ) reported fourth quarter EPS of $0.25 on
revenue of $119.30 million, compared to last year's loss of $0.24
per share on revenue of $97.41 million.
Stocks moving in the Premarket included:
Citigroup Inc (NYSE:
) gained 1.45 percent in premarket trade after falling 1.02 percent
on Monday Carnival Corp (NYSE:
) gained 1.32 percent in premarket trade after losing 2.87 percent
on Monday. Procter & Gamble Co. (NYSE:
) was up 1.06 percent in premarket trade after choppy trading took
the stock down 0.49 percent over the past five days. Lowe's
Companies Inc (NYSE:
) fell 14.45 percent in premarket trade after rising 6.29 percent
over the past week.
Notable earnings releases expected on Tuesday include:
AutoZone, Inc. (NYSE:
) is expected to report second quarter EPS of $5.54 on revenue of
$1.97 billion, compared to last year's EPS of $4.78 on revenue of
$1.86 billion. Bob Evans Farms, Inc. (NASDAQ:
) is expected to report third quarter EPS of $0.57 on revenue of
$350.54 million, compared to last year's EPS of $0.56 on revenue of
$434.44 million. Radioshack Corporation (NYSE:
) is expected to report a fourth quarter loss of $0.14 per share on
revenue of $1.12 billion, compared to last year's EPS of $0.04 on
revenue of $1.30 billion.
Tuesday's economic calendar will include British construction
PMI, eurozone PPI, the US redbook, Australian GDP, and US oil and
gasoline inventory data.
For a recap of Monday's market action, click .
Tune into Benzinga's pre-market info show with Dennis Dick and
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