Themes

• General mood is “risk off”
• Putin recognizes Donetsk and Luhansk independence
• Fed’s Bowman: supports raising rates at the March meeting

What’s Moving

It was all about the Ukrainian border overnight, with U.S. markets closed for the President’s Day holiday. Putin held a press conference where he talked a little tough about the Ukraine, but later in the day he recognized the independence of Donetsk and Luhansk.

The thinking is that now he has defined these two regions as independent, he could move his forces into them, which would give him a clearer run into Kiev. He has since ordered a “peace keeping” mission into both new regions.

Thoughts

For today, the post U.S. holiday trade in Asia is expected to remain quiet with eyes remaining on the Ukrainian border and what other nations do in relation to these two new “sovereign states.

The data and event calendar is light locally, with just:

• Japanese SPPI (E: +1.2%)
• RBA’s Kent to speak
• Japanese B.o.J. Core CPI (E: +1.1%)

Pivot Points