U.S stocks are bouncing to start the holiday-shortened week on a high note after posting the worst weekly decline last week since March 2020. After last week monetary policy tightening by the Fed which led to a sharp loss to equities last week, U.S stocks bounced on Tuesday. However, Treasury’s weakened Tuesday, pushing up yields. Subsequently, the S&P 500 increased 2.7% to finish at 3,764.79, Nasdaq 100 increased 3.3% to finish at 11,546.76 while Dow Jones increased 2.0%. The 10-year yield Treasury is at 3.284. Gold price increased $3.10 to $1,843.70 per ounce, while WTI crude oil increased $2.82 to $110.81 per barrel.

The ruble continued its strengthening against the news that Russian banks will be allowed to introduce negative rates on foreign currency accounts of legal entities. The Russian currency fell below 54 on USDRUB and below 57 on EURRUB for the first time since 2015. Also, the largest Russian banks Sberbank and VTB announced that they would no longer transfer foreign currencies to other banks within Russia. This morning it was slightly off with USDRUB at 53.45 and EURRUB at 56.30. Russia’s stocks market extended Tuesday losses with IMOEX closing 1.90% lower at 2358 points. Gazprom, Sberbank and Norilsk Nikel were the worst performers. Russian sovereign bonds remained mostly unchanged with Russia 28 offered in mid 30s and Russia 47 in mid 20s.

SSA opens largely weaker as recession concerns come to the fore pushing Brent 6% lower than Tuesday’s peak. KENINT (+0.375pts) outperformed in what was yet another generally sluggish session as the space stayed removed from the general market bullishness; it opens flat. NGERIA also opening flat with some demand seen on the belly.