European stocks rose slightly on Wednesday as energy prices rose in response to Russia Increases its attacks On the major cities in Ukraine, but traders bet on a loose monetary policy of central banks.
The regional Stokes Europe 600 added 0.1 per cent, with investors balancing the potential fallout from the crisis with that of central banks to change the previous signals that they were supposed to withdraw from support during the epidemic. German Xetra Dax added 0.3% and France’s CAC 40 rose 0.4%.
Futures that follow the Wall Street S&P 500 rose 0.6%. Those in the high-tech Nasdaq 100 rose 0.7 percent, as traders saw gains for large technology stocks whose earnings prospects were perceived as relatively isolated from short-term economic trends.
Brent crude, the international index, rose 4.2 percent to $ 109.34 a barrel after U.S. President Joe Biden declared Russia as isolated from the world and hinted at further economic sanctions.
Meanwhile, natural gas prices in Europe have reached an all-time high. TTF-related futures, Europe’s wholesale natural gas price, rose more than 50% to 185 euros per megawatt an hour before reducing its trading gains to 159 euros.
The sanctions imposed on Russia by Western countries have so far sought to avoid the energy sector, but have nevertheless provoked volatility in global markets due to fears of supply disruptions.
“Brent oil is the biggest fear factor for the stock markets,” said Marten Girdank, head of European equities at Dutch investment house NN Partners. “If it’s going ballistic and going in the direction of $ 150 or more per barrel, then [economic] Growth is really hurting. ”
But Ross Mayfield, an investment strategist at Baird, said: “There is risk sentiment from the war, but it may also put the Federal Reserve and other central banks on a less aggressive tightening track.”
The yield on the German index for 10 years rose by 0.03 percentage points to minus 0.04%. This follows a A powerful rally For US, UK and eurozone government bonds on Tuesday, as derivatives markets began to price at a much slower pace of monetary tightening by central banks, which was expected to emerge from the monetary support of the epidemic era with a series of interest rate hikes.
The US Treasury Department’s 10-year yield rose by 0.04 percentage points to 1.75%. This debt yield, which underlies global credit costs, fell nearly 0.1 percentage points on Tuesday and is close to levels last seen in January before Fed Chairman Jay Powell prepared financial markets for a series of Aggressive rate increases.
Recent oil rises, which have left Brent 13 percent higher since President Vladimir Putin launched his Invasion of Ukraine, Arrived when Russia stepped up its neighbor’s big city bombing. Prices have risen despite the US and 30 other countries saying they will release 60 million barrels from their strategic reserves.
Biden came under increasing pressure to ban Russian oil imports as Republicans and Democrats called on the US president to sever energy ties with the Kremlin. .
Russia’s central bank said the Moscow Stock Exchange, which did not open for trading on Monday, would remain closed on Wednesday.
European shares edge higher as oil and natural gas surge Source link European shares edge higher as oil and natural gas surge