FX.co ★ US stock market: Western countries to hold summit as Ukraine war enters second month

S&P500

Russia's war against Ukraine has entered its second month, as leaders of NATO, G7, and EU countries are set to meet at an extraordinary summit.

US stock market indexes closed lower on Wednesday, with the Dow Jones and NASDAQ losing 1.3%, and the S&P 500 falling by 1.2%.

US indexes remain above the 50-day MA of the S&P 500, as well as the lows of late February and early March.

Yesterday, Russian president Putin announced that natural gas sales to certain nations will be conducted in rubles and not US dollars or euros. Russia's latest actions are an attempt to force EU importers of Russian natural gas to buy RUB, thus reducing the effect of Western sanctions.

German economist Jens Suedekum told Die Welt that this decision could only increase the chances of restrictions being imposed on Russian gas exports, as Western companies would not buy RUB due to sanctions. Furthermore, Russia's demands has violated the terms of long term gas delivery contracts - the original currency of many contracts is USD and not RUB.

The war in Ukraine has entered its second month. The Russian army has largely remained at its original positions. The Ukrainian government continues to control western and central Ukraine. Russian forces have still not surrounded Kyiv, despite holding positions near the northern outskirts of the Ukrainian capital city. The Ukrainian armed forces maintain combat capability, resisting Russian ground troops. Heavy fighting continues in Mariupol, which is fully surrounded by Russian forces. No less than 100,000 residents of the city remain there in terrible conditions. The evacuation of civilians and delivery of humanitarian aid is extremely difficult. The humanitarian situation is also deteriorating in Kharkiv and Chernihiv, which are also blockaded. The intensity of bombardments is falling, and the course of war is becoming increasingly static.

The majority of UN member states at the UN General Assembly have condemned Russia's war against Ukraine and called for an immediate ceasefire.

The EU, NATO, and G7 countries are set to convene a joint summit today. Western countries will decide on new sanctions against Russia, which are aimed at forcing the Kremlin to begin a ceasefire.

There have been no breakthroughs in peace talks between Russia and Ukraine.

Crude oil prices have surged amid the ongoing war in Ukraine, with Brent reaching $121.80 per barrel. In the US, crude oil stockpiles dropped by 2.5 million barrels last week, the Energy Information Administration reported.

The S&P 500 is trading at 4,456 and is expected to be in the 4,420-4,500 range.

US durable goods orders data will be released today - economists expect orders to decrease by 0.5%. However, major market players are focusing on today's summits on the situation in Ukraine.

USDX is trading at 98.80 and is expected to be in the 98.50-99.10 range.

USD/CAD is trading at 1.2580 and is expected to be in the 1.2500-1.2700 range.

The US stock market needs positive developments at peace talks in Ukraine to resume its uptrend.