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European shares dip and commodity prices ease after rally on Wall Street

European equities opened lower, after their best day since March 2020, as investors waited to see if the European Central Bank would maintain a loose monetary policy to protect the bloc’s economies from the war in Ukraine.

The stock index of the regional Stoxx 600, which rose on Wednesday by 4.7% at a strong high unite Which snatched four days of losses, lost 0.5% in early trades on Thursday. The moves came ahead of the ECB’s monetary policy statement this afternoon, as well as an EU summit in which leaders will discuss a unified response to the risks of a recession in energy prices that prevent sanctions against Russia.

The London FTSE 100 was down 0.6%. German Xetra Dax, which jumped nearly 8% on Wednesday, fell 0.8%.

The moves came after overnight rallies on Wall Street and in Asia, with investors pinning their hopes on OPEC and U.S. shale drills that have boosted supplies to calm rising energy prices. The United Arab Emirates is Set to encourage Members of the producer group raise production, while U.S. Energy Minister Jennifer Greenholm on Wednesday Urged Local oil groups increase productivity, saying the nation is on a “war base.”

“Markets seem to have stuck to a few less bleak hints as an excuse to gather strongly in the last 24 hours,” said Robert Kernel, head of Asian research at ING.

Some analysts have asked if Wednesday’s gains will last, however, amid another night of heavy shelling and missile attacks by Russian forces in Ukraine.

“The most common question we have received from investors over the last 24 hours is whether the recovery in the markets yesterday is a first step in a more permanent turning point,” said Carl Steiner, chief quantitative strategist at SEB.

“We are less sure the bottom has been reached,” he added. “The fact that the war will be resolved through negotiations after only a few weeks seems unrealistic.”

Meanwhile, members of the ECB may disagree on whether to delay plans for the withdrawal of monetary policy emergency measures implemented during the corona crisis two years ago. Although the Ukraine war is a threat to economic growth, inflation in the eurozone has already peaked last month.

“We expect the ECB to confirm its intention to normalize policy later this year, although the timing and speed of monetary tightening will need to be reassessed further down the road,” said Frederick Dockrozet, a strategist at Pictet Wealth Management.

Brent crude, the international oil index, rose 3.9 percent to $ 115.55 a barrel after falling 13 percent in the previous session. The futures contracts following TTF, the European wholesale gas contract, were fixed at about 148 euros per mega watt an hour after rising to 335 euros on Monday.

In Asia, the Japanese Topix rose 4 percent on the best day since June 2020, while Australia’s S & P / ASX 200 rose more than 1 percent. The CSI 300 index in China rose by 1.6% while in Hong Kong the Hang Seng index rose by 1.2%.

The gains came following a rise on Wall Street, where the S&P 500 rose 2.6% and the technology-focused Nasdaq Composite jumped 3.6%.

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European shares dip and commodity prices ease after rally on Wall Street Source link European shares dip and commodity prices ease after rally on Wall Street

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