WHAT A CHOPPY DAY!

U.S. and European indices ended Tuesday with a choppy trading session and went broadly lower. The market turned from optimism to red territory when European Union announced the new round of sanctions against Russia for its role in the civil war in Ukraine. These sanctions mostly effect on the following sectors: finance and oil production. At the beginning of US session DJIA was steadily above the 17,000 level, but finally couldn’t hold and closed at 16,912.

After the announcement all major indices in US, S&P500, DJIA and Nasdaq started the sell off to the end of session. Generally all benchmark indices suffered a severe drop, except the Russell 2000 which gained by 0,2%, surprisingly because it has been underperforming this year the other indices.

• S&P -0.45%
• Dow -0.4% 
• Nasdaq -0.05%
• Russell 2000 +0.2%

The FOMC holds its two-day meeting that started Tuesday morning, so today the choppy behaviour of the market might stay with us for today as well.

Technically the Nasdaq specially doesn’t look disappointing. If the index will be able close above the 3,970 level, in that case could jump again easily over 4,000 the technology index.

The BFM Assets Team.