Morning Report 21 Feb 22: ASX 200 set for lower open reflect US & European caution

US sharemarkets fell on Friday as investors squared positions ahead of a long weekend. Fears of a Russian invasion of Ukraine dominated trade as well as monthly option expiry. Shares in chipmaker Intel fell 5.3% after it said it sees no major improvements in profit margins before 2025. The Dow Jones index closed down by 233 points or 0.7%. The S&P 500 index lost 0.7% with the Nasdaq index dropping 169 points or 1.2%. Over the week the Dow fell by 1.9%; S&P 500 fell 1.6%; and the Nasdaq fell by 1.8%.

US treasuries rose on Friday (yields lower). Comments from New York Federal Reserve President John Williams further watered down chances of a 50 basis point increase in rates in March. US 10-year yields fell by 4 points to near 1.93%. And US 2-year yields fell less than 1 point to near 1.47%. Over the week US 10-year yields rose by 1 point while US 2-year yields fell by 2 points.  

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