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Ukraine – Russia Tensions Escalate, Powell’s Latest Rate Hike Comments & Tragic Airline Crash Sends Boeing Shares Down

Gold jumps as Ukraine refuses to surrender Mariupol

Gold prices were up to start the week, as markets reacted to an escalation of tensions between Russia and Ukraine.

Over the weekend, Russia had informed Ukraine that they expected the government to surrender Mariupol by 5 AM local time on Monday.

However, despite warnings from Moscow, Ukraine refused, with Deputy PM Iryna Vereshchuk refusing to accept Russian threats.

Responding to the threats by Russian military officials, Vereshchuk stated that, “There can be no question of any surrender”.

It was reported that all who stayed in Mariupol will be subject to tribunals run by Moscow-backed separatists.

XAUUSD rose to a high of $1,936.

S&P 500 slips, as Powell says Fed could hike rates faster

The S&P 500 fell on Monday, as Fed Chair Jerome Powell gave some comments regarding the latest rate hike.

Speaking on Monday, Powell stated that the Federal Reserve would need, “to move more quickly”, should inflationary pressures persist.  

Powell said that, “The expectation going into this year was that we would see inflation peaking in the first quarter, then maybe levelling out and see a lot of progress in the second half. That story has already fallen apart”.


source: tradingeconomics.com

He went on to say, “To the extent it continues to fall apart my colleagues and I may well reach the conclusion we’ll need to move more quickly and if so we’ll do so”.

Both the NASDAQ and benchmark S&P 500 were lower as of writing.

Boeing shares fall, as 737-800 crashes in China

Shares in Boeing fell in today’s session, following news of a crash which occurred in a mountainous area of southern China.

The Boeing 737-800 which had roughly 132 people on board, crashed after contact was lost over Wuzhou, in the Guangxi region.

We are now waiting for an official report on the death toll. If no survivors are found, it would be China’s deadliest airline crash since 1994.

Boeing, which had to ground its 737 max following two crashes in 2018, and 2018 have so far not commented.

In a statement, Chinese authorities stated that, “Our thoughts are with the passengers and crew of China Eastern Airlines Flight MU 5735”.

Boeing shares were down by over 5% as of writing.

“Invest for the long haul. Don’t get too greedy and don’t get too scared.”

-Shelby M.C. Davis.

Eliman Dambell

Senior Market Analyst