After sharp losses from the start of the week, global stock markets extended their gains on Friday, adding to the technological recovery with some confidence in the potential negotiations between Russia and Ukraine.
European markets were up about 3% after losing about 4% the previous day. Paris 2.96%, London 3.50%, Frankfurt 2.84% and Milan 3.15%, GMT rebounded at 3:15 p.m. In Switzerland, the primary SMI index rose 2.95%.
After losing more than 30% on Thursday, the Russian stock market rose more than 20%.
Wall Street, already a green Thursday evening, continued its momentum in trading since Friday: the Dow Jones gained 0.67% and the S&P 500 0.36%. However, the Nasdaq fell 0.58%, up more than 3% from the previous day.
Russian forces tightened their grip around Kiev on Friday as fighting erupted in and around the Ukrainian capital, the second day of an invasion that the Ukrainian military is trying to repel.
Markets, however, welcomed the start of a possible debate between Russia and Ukraine. According to Russian agencies, the Kremlin has so far deliberately denied that Vladimir Putin would actually send a delegation to Minsk, Belarus, to hold talks with Ukraine. Shortly afterwards, Vladimir Putin called on the Ukrainian army to “seize power” in Kiev.
Chinese President Xi Jinping, who has a close relationship with Putin, spoke with him on the phone. China “supports Russia in resolving (conflict) through negotiations with Ukraine,” state-run CCTV reported.
On Thursday, markets were particularly apprehensive about possible sanctions against Russia, recalled Neil Wilson of Markets.com. “The absence of sanctions on Russia’s oil and gas and the decision not to exclude the country from the Swift tariff network allowed the market to sigh with relief,” he said.
However, the volatility is so strong that “there is a great deal of uncertainty about the worsening situation,” recalled Onda researcher Craig Erlam.
Nevertheless, the rise in securities, with US 10-year returns close to 2%, is a sign that investors are returning to risky assets.
Oil prices have fallen sharply. Brent’s barrel fell below the $ 100 level (-0.94% to $ 98.15), far from the previous day’s high of $ 105, and WTI fell 0.47% to $ 92.32 at 3:20 pm GMT.
Wheat (-6.32%) also evolved far from its peak the previous day.
Gas on the Dutch TTF, the main European market, fluctuated 95.50 euros (-29%) after hitting a high of 143 euros GMT at 1:40 pm on Thursday.
Russia and Ukraine are essential countries for the supply of oil, gas, wheat and other important raw materials.
“Energy prices will continue to keep central banks alert because they can do nothing to directly address supply issues,” he said, adding that inflation in the West is on the rise, Deutsche Bank analysts said. The fight against inflation has been a priority for weeks by central banks.
The PCE index, the central bank’s preferred inflation index, rose 0.6% in January compared to December, and in one year, inflation rose to 6.1% in the United States.
Mining resumed on Thursday: Evras rose 19.71%, polymetal 8.32% in London, while ArcelorMittal took 9.07% in Paris.
This article was automatically published. Sources: ats / awp / afp
“Avid gamer. Social media geek. Proud troublemaker. Thinker. Travel fan. Problem solver.”