Shares in Europe rose on Tuesday as the chances of progress in Russia-Ukraine peace talks boosted market sentiment.
Europe’s regional stock index Stoxx 600 rose 1.1%, with gains for automakers and technology stocks, although it remained almost 6% lower in the quarter. The London FTSE 100 rose 0.9% and the German Xetra Dax rose 1.2%. Futures markets suggest that the Wall Street S&P 500 stock index will open up 0.3%.
Messengers from Moscow and Kiev met in Istanbul on Tuesday to discuss a A possible peace agreement is possible This will cause Ukraine to abandon its urge to join NATO in exchange for security guarantees and the chance to join the EU.
Many investors expect the effects of the war, including Prices are rising in a spiral of goods However, and metals produced in both countries, to continue to weigh on the financial markets.
“The tragic war in Ukraine has led to a global energy shock. We are seeing rising inflation, putting pressure on consumers and hurting growth, especially in Europe,” the BlackRock Institute wrote in a comment to clients.
Guilhem Savry, director of cross-assets at Unigestion, added that while short-term hedge fund strategies are following a trend of buying stocks today, “it could be reversed quickly because [economic] Basics do not support it. “
He added: “We are in a short-term positive cycle that will change once there is a negative geopolitical event or negative economic growth data.”
Brent Crude, the International Oil Index rose 1.3 percent to $ 113.9 a barrel, following a sharp drop in the previous session after Chinese authorities responded to an increase in Cubid-19 cases by imposing Extreme locking means In Shanghai. There are oil prices Rocked violently Over the past week, typically with intraday moves of at least 5%, while Brent rose to nearly $ 140 earlier this month.
In the Debt Markets, U.S. Treasury Departments with Short Dates Stayed Under Pressure When Traders Bet on the Federal Reserve Raising interest rates quickly This year to fight rising inflation. The yield curve of the Ministry of Finance, which outlines the yields on bonds in various ranges and traditionally slopes upwards, continued to flatten when investors avoided economic risk in the near term.
The price action in the finance market was also exaggerated due to illiquidity – the ease with which traders can buy and sell securities – after investors Became a bear On bonds, whose fixed-income payments are eroded by inflation.
The yield on the biennial Treasury note, which fluctuated and followed monetary policy expectations, added nearly 0.04 percentage points to 2.42 percent, almost 1.7 percentage points above its level at the end of 2021. The 10-year index yielded 0.02 percentage points to 2.5 percent .
“The U.S. Treasury curve has gone completely off track with cruel liquidity conditions and a completely bizarre price action,” said analysts at the Bespoke Investment Group.
“This kind of huge front sale while the long-term gains tend to come in periods of very high volatility or when the finance curve flattens into a recession.”
In Asia, the Hong Kong Hang Seng Index rose 1.1% and the Japanese Topix rose 0.9%.
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European shares rise as traders focus on Russia-Ukraine talks Source link European shares rise as traders focus on Russia-Ukraine talks