Equity markets expected lower as fighting intensifies in Ukraine. The Eurostoxx 50 opens at 3,765.85 points (-4.04%), the CAC 40 at 6,396.49 points (-3.94%), the DAX 40 at 13,904.85 points (-3.85% ), the FTSE 100 at 7,330.20 points (-1.72%), the SMI at 11,862.28 points (-1.04%), the AEX at 713.46 points (-2.23%), the BEL 20 at 3,937.92 points (-1.90%), IBEX 35 at 8,188.20 points (-3.43%), DJIA at 33,294.95 points (-1.76%), Nasdaq at 13,532.46 points (-1.59%), the S&P 500 at 4,306.26 points (-1.55%) and the Nikkei 225 at 26,393.03 points (-1.68%).

Regarding exchange rates, the variation compared to the close in New York indicates that EUR/USD at 1.1116 (-0.08%), EUR/JPY at 127.93 (+0 .07%) and USD/JPY at 115.10 (+0.15%).

On Tuesday evening, the gas and electricity supplier Engie indicated that it was following "very closely the development of the situation" in Ukraine, specifying that it would "of course" comply "with any sanctions that could be taken" at the against Russia. Car rental group Europcar Mobility Group announced on Tuesday its intention to prioritize profitability over volumes in 2022, after very strong results in 2021, both in terms of revenue and profitability.

The collective catering group Elior announced that Philippe Guillemot had submitted his resignation from his mandate as group administrator with immediate effect "for personal reasons" and asked not to be renewed in his position as general manager. The IT services company Atos announced on Tuesday the appointment of a new financial director, Stéphane Lhopiteau, who will succeed Uwe Stelter on May 1. Philippe Oliva has also been appointed commercial director of the group, which he will join on April 1. He joins Atos from Eutelsat, where he had been commercial director for four years.

Most European equity markets are expected to open lower on Wednesday as fighting intensifies in Ukraine. Given the rise in the price of Brent, the British FTSE 100 index, in which oil producers are heavily weighted, could start the session higher. At 7:45 a.m., the CAC 40 futures contract was down 31.4 points, or 0.5%, according to data from broker IG Markets. The contract on the DAX 40 lost 76.5 points, or 0.6%, while that on the FTSE 100 rose by 27.2 points, or 0.4%.

Investors will watch Wednesday inflation figures in the euro zone, the meeting of the Organization of the Petroleum Exporting Countries and its allies (OPEC +) and the ADP report on employment in the United States. They will also be interested in the hearing of Fed Chairman Jerome Powell before the House of Representatives as part of the semi-annual review of monetary policy, as well as the speeches of the President of the Chicago Fed and that of the St. Louis Fed. The publication of the Fed's Beige Book on Wednesday evening will also attract the attention of the markets. The New York Stock Exchange ended sharply lower on Tuesday, as investors watched with concern the worsening conflict in Ukraine and the surge in oil prices following sanctions against Moscow. In Asia, equity markets moved lower on Wednesday. The Nikkei index closed down -1.7% in Tokyo. At the end of the session, the Hang Seng index of the Hong Kong Stock Exchange lost 1.1% and the Shanghai Composite yielded 0.3%.

Yields on U.S. Treasury bonds are stabilizing on Wednesday morning, after a strong rebound in prices on Tuesday, which caused the largest two-day drop in the rate on the 10-year bond since March 2020. Around 7:40 a.m., the rate of the 10-year security was almost unchanged, at 1.726%. Investors are weighing the implications of Russia's invasion of Ukraine for the outlook for inflation and global growth, as well as how central banks, including the Fed, will react. Uncertainty prompted operators to price in a less drastic increase in key interest rates by the Fed and other major central banks.

Futures markets are pricing the likelihood that the Fed will raise interest rates by half a point in March to zero. A week ago, they put the odds of such a move at 41%, according to the CME FedWatch Tool indicator, which is based on the price movement of federal funds rate futures. Futures now price a 96% chance of a quarter-point hike and a 4% chance of no rate hike.

The euro gave up some ground on Wednesday morning against the dollar but appreciated slightly against the yen. The greenback is also progressing against the Japanese currency.

Oil futures rose almost 5% on Wednesday morning, extending their rise given the possible reluctance of buyers for Russian oil. As of 7:30 a.m., the May futures contract for Brent North Sea crude was up $5.03, or 4.8%, at $109.95 a barrel, while the April contract for light sweet crude (WTI ) listed on the Nymex took $5.06, or 4.9%, to $108.50 a barrel.