Markets Are Tumbling, Wheat Surges After Ukraine Headlines

Russia military tank convoyREUTERS/Maxim ShemetovRussian military personnel atop armoured vehicles outside Kamensk-Shakhtinsky, Rostov Region, on Friday.

Markets turned red after negative headlines out of Ukraine.

Headlines from Bloomberg, citing a Ukrainian military spokesperson, said that Ukrainian troops destroyed part of an armed convoy from Russia.

The Dow was down 85 points, the S&P 500 fell 7 points, and the Nasdaq was down 10 points. 

The price of wheat also spiked as much as 2% following the report, as Russia is a major exporter of wheat. Gold, which was down notably earlier on Friday, moved about $US6 off of its lows to climb back above $US1,300 an ounce. 

Bonds are also rallying, with the yield on the U.S. 10-year bond falling to 2.34%.

Earlier the Dow was up more than 50 points but has fallen as much as 120 points round-trip.

Michael McDonough of Bloomberg put the move in both S&P 500 futures and the U.S. 10-year Treasury bond in context on Twitter.

 

 

 

Earlier on Friday, we got a number of economic reports, which were mixed. 

The headline reading for the New York Fed’s Empire State Manufacturing report fell to 14.69, but some internals in the report looked positive, noted BI’s Rob Wile

Producer prices were in-line with expectations, and the Fed’s latest industrial production report came in a little bit better than expected. 

The preliminary read on August consumer confidence from the University of Michigan fell to a 9-month low. 

Here’s a chart of wheat following the Ukraine news.

This post will be updated. 

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