As the Russia-Ukraine conflict intensified over the weekend, Fundstrat's Tom Lee saw further evidence that markets have reached a bottom for the first half of the year. "Escalation over the weekend, while negative, potentially raise odds 1H low is in," Lee, the head of research at Fundstrat Global Advisors, said in a Monday note. Since Moscow initiated military action in Ukraine early Thursday morning local time, financial markets have been in turmoil. Over the weekend, the U.S., Canada and European allies moved to bar key Russian banks from the interbank messaging system, SWIFT . The system connects more than 11,000 banks and financial institutions in more than 200 countries and territories. On Monday, the Biden administration announced additional sanctions against Russia's central bank that would effectively prohibit Americans from doing business with the bank and freezes its assets within the U.S. Officials from both Russia and Ukraine held a round of negotiations near the Belarus border on Monday . "All of this adds several layers of concern to the existing 'wall of worry' (actually a mountain). And there is considerable uncertainty," Lee said. However, Lee highlighted that U.S. stocks posted "solid gains" Thursday and Friday. Lee also noted "positive incremental surprises" over the weekend, including the responses from European allies. The call comes after Lee said Friday that the market had a "buy the invasion" moment and may have bottomed. "It is entirely unclear how this conflict ends," Lee said in his Monday note.
Tom Lee, Fundstrat Global Advisors
Scott Mlyn | CNBC
As the Russia-Ukraine conflict intensified over the weekend, Fundstrat's Tom Lee saw further evidence that markets have reached a bottom for the first half of the year.