Futures Spike After Secretary Of State Blinken Accepts Meeting With Lavrov Next Week

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by Tyler Durden
Friday, Feb 18, 2022 - 02:10 AM

After a dismal day for risk which saw the S&P close down more than 2% and the Nasdaq tumble as much as 3% amid sharply heightened tensions in Ukraine where we got he-shot/she-shot reports of shelling in the Donbas regions and escalate diplomatic animosity to a fever pitch, moments ago futures jumped after State Dept. spokesperson Ned Price said  in a statement that Russia responded to a U.S. offer for meeting between Blinken and Lavrov in Europe with proposed dates for late next week, and the U.S. has accepted “provided there is no further Russian invasion of Ukraine.”

Redundantly, Price added that “if they do invade in the coming days, it will make clear they were never serious about diplomacy.” Of course, this is trivial because if Putin really wanted to invade he would have done so by now, and as David Rosenberg also correctly notes,  Putin "knows better than blow up the Russian economy. Diplomacy will win out and he's going to end up getting what he wants"...

... but not before a whole lot of huffing and puffing drama, so it appears that the US at least fought bravely.

Russia told the U.S. in its official response to security proposals from Washington that it has no plans to attack, and officials in Moscow have repeatedly dismissed U.S. warnings of a possible move against Ukraine as “hysteria” and propaganda. Its foreign ministry handed over a document Thursday with its views, saying the U.S. response was unsatisfactory. The two sides in the conflict in eastern Ukraine -- government forces and Moscow-backed separatists -- accused each other of breaking cease-fire rules.

Elsewhere, Biden will speak with transatlantic leaders on Friday about the Russian troop buildup, a White House official said on Thursday night. Also on Thursday night, the U.S. Senate passed a non-binding resolution in support of Ukraine.

In kneejerk response to the news, S&P futures jumped more than 30 points and we trading back above 4400 last...

... and the Nasdaq was up almost 1%, with safe havens like gold and Treasuries selling off, sending the 10Y yields back to 1.99%.

And now, absent some further dramatic escalations, risk will likely squeeze for the next few days until the Putin-Blinked meeting, at which point we reset and we repeat this charade all over again.