Themes

· General mood is “risk off”

· Ukrainian Deputy Chief of Staff: Ukraine is ready for a diplomatic solution

· Russian official: Russia will not concede anything

What’s Moving

The second day of Russian and Ukrainian talks provided some solace overnight, with the Ukrainian Deputy Chief of Staff noting that the Ukraine is ready for a diplomatic solution. This initial news saw unwinding of safe haven trades as players looked to take some profits off the table.

Later comments by a Russian delegate at the talks that Russia will not concede anything then saw the safe haven bid re-emerge.

Stocks were firmer on the day, while gold and oil were both weaker.

Thoughts

Expect a fairly quiet session in Asia today, with most players still short risk and waiting for fresh incentives out of the Ukraine.

Asian session data today includes:

· Japanese PPI (E: 8.6%)

· Australian M1 Inflation Expectations (4.6% last)