World Markets in Relief Rally Mode

U.S. stocks jumped today, with the Dow and S&P 500 bouncing back after their worst hit in a month, as concerns over the Ukraine ebbed.

Reported comments by Vladimir Putin that the Russian president had called troops taking part in military exercises close to Russia’s border with the Ukraine back to their bases helped calm worries of an immediate escalation of military force.

The geopolitical friction spurred a run by investors to perceived safe havens on Monday, with gold, the U.S. dollar and Treasury prices rallying. On Tuesday, that trend reversed, although volatility was expected to remain in play as the situation in the Ukraine continues to play out.

On the economic front, President Obama released his fiscal year 2015 budget proposal Tuesday. The $4 trillion proposal, which is not expected to pass Congress, includes more generous tax breaks for working families while scaling back breaks for the rich.

Russia’s main stock market index soared more than 4% after suffering an 11% fall Monday.

Europe’s leading markets were also up. Asian stock markets ended sharply higher as well.

Wednesday: 8:15 a.m.: ADP employment, 8:58 a.m.: Services PMI, 10:00 a.m.: ISM nonmanufacturing, 2:00 p.m.: Beige Book

News Sources:  CNBC and CNN Money

Market Update:

This bull just keeps on trucking.  I bet those that sold yesterday in panic are feeling a little foolish today.  This is why I trade a system, so I can avoid emotional decision making.  Our intelligence goes down when our emotions go up.

Putin must have been choking over his cornflakes when he seen his stock market crash 11%.  He underestimated the potential damage to his own economy and had to act to calm things down.  Hopefully things will remain calm and peaceful and that the passage of time allows the Ukraine to get its house in order and give the people a new democratic government.