Dhara Ranasinghe gives us a look at what lies ahead for the markets.

McDonald’s opened its first Moscow location in Pushkin Square, in 1990. It became an emblem of American capitalism’s success after the fall of Soviet Union.

News that McDonald’s and PepsiCo (NASDAQ :), Coca-Cola, and Starbucks have stopped all sales to Russia is another indication of how a new line has been drawn between the East and West since Russia’s invasion in Ukraine.

Russia in turn warned that on Wednesday, it would work to quickly respond to West sanctions and make an impact on the most sensitive parts of the West.

Some believe that the decision by McDonald’s and other major companies to cut all ties with Russia is overdue. After all, a number of large corporations have already distanced themselves from Russia since the West increased sanctions. Some argue that such actions could harm the public opinion of Russians who are suffering economic hardship as a result.

Some relief appears to be on the horizon for global stock markets after days of sell-off. European and U.S. stocks futures trade in positive territory, and MSCI’s global stock index remains steady at or near its one-year lowests.

Maybe, for the moment, bad news is already priced in?

The U.S. new ban on Russian oil has seen prices for oil rise again. Britain announced that it would end imports from Russia of oil and other products by 2022.

It is now at $131 per barrel. This brings its total gains from the February 24 Russian invasion in Ukraine to nearly 35%.

This surge can already be felt in consumers’ lives through the rocketing fuel prices.

Aluminium, which is a major Russian export, saw prices jump 5% Wednesday after nickel trading was suspended by the London Metal Exchange. This happened following a doubled price that was caused by short-covering from a leading producer.

Last week, an analyst pointed out that “this is going hurt”

Oil and inflation expectations https://fingfx.thomsonreuters.com/gfx/mkt/klpykblbrpg/oil0903.PNG

On Wednesday, key developments should give more direction to the markets:

China February factory inflation decreases. The spotlight is on global commodities

Fitch reduces Russia’s credit rating to junk and warns of imminent debt default

South Korea’s presidential elections are held.

– German budget

– U.S. JOLTS Job Openings

– U.S. 10-year note auction