- Stocks rise across the world on expectations for talks.
- Oil falls sharply and metals also lose ground.
- The yen and the dollar, the worst performing currencies.
Markets are rising on Wednesday, offering some relief after several days of declines, some very steep. S&P 500 futures are up 1.70% after losing 0.72% on Tuesday. The better tone is reflected in the fall of the dollar and the yen.
Stocks up, oil and metals down
The main stock markets in Europe rise significantly. The DAX advances 4.60% and the FTSE 100 1.50%. After the announcements of the sanctions against Russia, especially the ban on buying oil and gas by the US that led to the recent floor, there was a rebound in the share price. The boost came from economic announcements and some expectation in the new round of talks between Russia and Ukraine.
The positive tone is leading to a decline in the price of oil. The barrel of WTI loses more than 3%, paring some of the recent gains. Metals are also losing ground. Gold fell to the $2,000 zone. Treasury yields rise, with the 10-year rate already at 1.91%, the highest in a week and a half. Today there will be a 10-year debt placement in the US.
Optimism carries over to emerging market currencies, which are showing a strong recovery. This for the Russian ruble only means some stabilization. Russia announced the ban on buying foreign currency for six months, the stock market remains closed and Fitch Ratings cut the credit rating to “garbage” warning of a soon default.
The and in it is the worst performing coin. USD/JPY continues to advance and is above a key level (115.80) for the time being supported by rising yields. EUR/USD tries to reach 1.1000. The best mood even reaches cryptocurrencies. The Bitcoin rises almost 10%, and trades on $42,000.
With no big reports ahead for Wednesday, news about Ukraine and responses to sanctions will hopefully continue to dominate the scene. On Thursday it will be the turn of the US inflation figure and the meeting of the European Central Bank.
Technical levels
Source: Fx Street
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