The main European indices are trying to erase some of the significant losses yesterday, with buyers returning to the forefront, awaiting developments in the Ukrainian crisis and new indications of the Fed’s intentions in the forthcoming tightening of its policy.
In particular, the pan-European index is moving with gains of 0.9%, with the food and beverage sector leading the rise to + 1.3%.
The climate is similar in the domestic European markets, with the DAX in Germany trading at 15,301 points with + 1.24%, the French CAC 40 at 6,960 points with + 1.5% and the British FTSE 100 at + 1% and the 7,606 units.
Finally in the region, the Italian FTSE MIB rose 0.95% to 26,675 points, as well as the IBEX 35 in Spain which strengthened by 1.1% and is at 8,666 points.
As mentioned above, geopolitics remain in the spotlight of investors, as the possibility of Russian invasion of Ukraine yesterday brought a mini sell off in European indices with losses of more than 2%.
In anticipation of new developments, however, the investment climate seems to be recovering today, although there are growing indications that Russia intends to attack its neighboring country.
Among other things, Ukrainian President Zhelensky referred yesterday to reports of a Russian invasion on Wednesday, while US Secretary of State Anthony Blinken said he was also concerned about military action by Moscow within the week.
In any case, diplomacy will be in the spotlight today, as Russian President Vladimir Putin will hold talks with German Chancellor Olaf Solz, who is visiting Moscow.
Meanwhile, the US Federal Reserve continues to be the focus of investors, with the market trying to assess how aggressively it will move in the forthcoming increase in interest rates.
For his part yesterday, the member of the Board St. Louis Banker and Fed Chairman James Bullard reiterated his position on raising interest rates by 100 basis points by June, possibly meaning a 50-point increase in March.
In the macro news of the day, in Britain corporate payroll rose by 108,000 in January, while the unemployment rate remained unchanged at 4.1% in the quarter to December, lower than analysts had expected 4.2%.
Source: Capital
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