Investors are still torn between their natural inclination to take advantage of prices that are still below their level at the start of the year, and anxiety about geopolitics, inflation and an uncertain future. Commodity prices rose sharply after Vladimir Putin announced the closure of the Caspian Pipeline Consortium's Black Sea terminal due to "storm damage." He also asked that the Russian gas bill for countries contesting the war in Ukraine be paid in rubles. 

This is a way of reducing the weight of sanctions on the Russian currency. This possibility had already been mentioned in the past and echoes other measures such as the ability for the Kremlin to repay debts in rubles rather than in dollars or euros. Since the beginning of the conflict, we know that European dependence on Russian fossil fuels is Putin's main lever…

The week ends with Joe Biden's trip to Europe. First in Brussels, then in Poland on Friday. Energy prices are likely to be very volatile today, as POTUS is said to be bringing new sanctions against Russia, and will also unveil a draft project to reduce European dependence on Russian gas.

This March 24 coincides with the reopening of the Moscow Stock Exchange, where shares have not been traded since February 25. A partial and supervised reopening, which will concern 33 companies. And again, short selling will be banned and only Russian residents will be able to place sell orders. Meanwhile, the retreat from Russia continues for Western companies. French carmaker Renault, which was still resisting international pressure, finally gave up by closing its local subsidiary Avtovaz, which is also the leading Russian carmaker, better known through some of its brands such as Lada. Every day, companies that were trying to go under the radar are now taking measures to comply strictly with international sanctions, or to go beyond them by ceasing all activity.

 

Economic highlights of the day:

The Flash PMI indicators of the world's major economies for the month of March are published throughout the day. US durable goods orders and weekly jobless claims are also on the agenda.

The dollar is trading at EUR 0.9103. The ounce of gold rallies to around USD 1962. Oil remains firm, with North Sea Brent at USD 119.4 and US WTI light crude at USD 113.04. US debt yields moderate a bit to 2.35% over 10 years, while German debt offers a coupon of 0.46% over the same duration. Bitcoin is trading around USD 42,900.

 

On markets:

* Uber - Uber shares jump more than 6% in pre-market trading after signing an agreement to integrate all New York City cabs into its VTC service booking app. Its competitor LYFT's stock is down 3%.

* The Boeing Company - The team of investigators dispatched to the crash site of China Eastern Airlines flight MU5735, which crashed in the mountains of southern China on Monday, is still searching for the second black box of the Boeing 737-800.

* Google, a subsidiary of Alphabet, announced Wednesday that it would allow Spotify to use its own payment system in its online app store as part of a test program while the internet giant is under investigation for anti-competitive practices. Spotify shares are up 4% in pre-market trading.

* Qualcomm - Swedish automotive technology group VEONEER announced Thursday that its $4.5 billion buyout by Qualcomm and investment group SSW Partners would close on April 1. Qualcomm shares advanced 1.4% in pre-market trading and Veoneer gained 2.1%.

* Moderna - The U.S. drugmaker on Thursday raised its full-year sales forecast for its COVID-19 vaccine from $19 billion to about $21 billion.

* Eli Lilly - The U.S. Food and Drug Administration rejected an application for approval of a lung cancer treatment from Eli Lilly and its partner Innovent Biologics, the U.S. drugmaker said Thursday.

* American Airlines, United Airlines, Delta Air Lines - Executives from the three airlines and other transportation groups urged U.S. President Joe Biden on Wednesday to end mask wearing, COVID-19 testing and other health measures on domestic and international flights.

* Nikola announced Wednesday that it would start production of its electric truck on March 21 with the goal of delivering 300 to 500 this year. The group's stock jumped about 9% in pre-market trading.

* KKR - The U.S. investment fund is sticking to its request for access to Telecom Italia's books before formally making a proposal to buy the group, a source close to the matter said.

 

Analyst recommendations:

British American Tobacco: J.P. Morgan upgrades from neutral to overweight, targeting GBp 4,000.

Drax: Jefferies downgrades from buy to hold, targeting GBp 700.

GDS Holdings: Deutsche Bank raised its recommendation on GDS Holdings Ltd. Class A ADRs to buy from hold. PT up 29% to $55.

Huya: Daiwa adjusts price target to $5.70 from $7, keeps outperform rating

Hyatt Hotels: Truist Securities adjusts price target to $111 from $106, keeps buy rating.

International Consolidated Airlines Group: Deutsche Bank downgrades to hold from buy. PT up 12% to 155 pence.

Leidos: Wells Fargo Securities downgrades to equal-weight from overweight. PT up 5.8% to $113.

Occidental Petroleum: Mizuho Securities raises occidental petroleum's price target to $78 from $50, maintains buy rating.

Rightmove: RBC moves from Underperform to Market Perform targeting GBp 630.

Ryman Hospitality: SMBC Nikko initiates coverage with neutral rating, $95 price target

Schnitzer: KeyBanc Capital Markets upgrades to overweight from sector weight. PT up 19% to $58.

Werner Enterprises: Wells Fargo Securities raised the recommendation to equal-weight from underweight. PT up 9.2% to $46.