As reported earlier, the biggest overnight news took place just around 4am Eastern when futures exploded to new ATH on headlines of a new ceasefire in Ukraine, which was promptly refuted by both Putin and the rebels, but futures don’t care and have continue raging higher, in hopes of sweeping the latest batch of ugly economic news out of Europe, this time in the form of Europe’s non-mfg PMIs, under the rug.
As RanSquawk summarizes, heading into the North American open, the bulk of the morning’s price action has been provided by news that Ukrainian President Poroshenko said that he reached an agreement with Russia’s Putin on a “permanent cease fire” in Eastern Ukraine’s Donbass region. This saw an immediate spike higher in European equities with the DAX future rallying and breaking above its 100DMA seen at 9644.50, thus extending earlier gains that stemmed from the strong performance in Asia-Pacific equities, while the e-mini S&P once again printed a fresh record high. However, these moves staged a partial reversal amid comments from Russia’s Putin that he denied that such an agreement had been reached as Russia is not a party to the Ukraine conflict. In stock specific news, Russian exposed Raiffeisen Bank outperforms Europe ( 7%) in reaction to the geopolitical developments, while Hugo Boss have underperformed throughout the session following a share placement which came in at the lower end (-5.3%).
A quick recap of the Euroarea final, and disappointing, composite PMI data from Goldman.
This post was published at Zero Hedge on 09/03/2014.