Euro markets recover dynamically – 3% jump for the Stoxx 600

Renewed optimism for a diplomatic solution in Ukraine sparked a rally in European markets on Wednesday, with investors awaiting the Federal Reserve’s current monetary policy decisions and the Federal Reserve’s assessment of the economy.

Investor sentiment was fueled by reports Wednesday that progress had been made in negotiations between Russia and Ukraine to reach a peace plan.

Russian Foreign Minister Sergei Lavrov told RBC News today that some points in the agreement had almost been agreed upon, adding that the “neutral” status of Ukraine had been “discussed in detail”.

At the same time, the Kremlin announced that a “demilitarized” Ukraine with its own army, such as the example of Austria or Sweden, is something that is being considered in the context of a possible compromise. “This is an option that is being discussed at the moment and could be considered a compromise,” Kremlin spokesman Dmitry Peshkov was quoted as saying by RIA Novosti. Peshkov’s reference to demilitarization appears to be linked to a neutral regime for Ukraine outside NATO. It is noted that Austria and Sweden are not members of NATO, while they belong to the EU.

For its part, Ukraine reiterated the need for “full security guarantees” against Russia, while rejecting the idea of ​​implementing an “Austrian or Swedish” model of “neutrality”, according to the Ukrainian presidency.

“Ukraine is currently in a state of direct war with Russia. Consequently, the model can only be ‘Ukrainian’,” said Mikhail Pontoliak, one of the Ukrainian negotiators.

Dashboard

On the board, the pan-European Stoxx 600 index jumped 3.07% to 448.46 points, with Europe’s major sub-markets and almost all industry indices closing in positive territory. more than 6.5%, while the “utility” for the markets today was the utility sector, which fell by 0.8%.

The Euro Stoxx 50 also recorded strong gains of over 4%, closing at 3,889.69 points.

In Frankfurt, the DAX index finished 3.76% higher at 14,440.74 points, while the CAC 40 in Paris recorded similar gains, closing at 6,588.64 points, with an increase of 3.68%. In London, the FTSE 100 strengthened by 1.62% and finished the day at 7,291.68 points.

The European region also recorded strong gains, with the FTSE MIB index in Milan recording a “jump” of 3.34% to 24,284.85 points and the IBEX 35 in Madrid closing at 8,380.40 points, with gains of 1.75%.

Investors, beyond Ukraine, were now turning their attention to the Federal Reserve’s monetary policy decisions, which were expected shortly after the meeting closed in Europe. Analysts expect US interest rates to rise by 25 basis points – the first rate hike since 2018 – as huge geopolitical uncertainty leaves no room for the central bank to make bolder moves to curb the fastest inflation in 40 years.