Categories: Markets

Stoxx 600 gains more than 1% – The ‘jump’ shrinks after the positive Putin signal

Stoxx 600 gains more than 1% – The ‘jump’ shrinks after the positive Putin signal

LAST UPDATE: 17.55

European stock markets are gaining ground following a statement by Russian President Vladimir Putin that there has been some progress in Moscow’s talks with Ukraine, without giving further details.

“There are some positive changes, the negotiators are telling us,” Putin told a meeting with his Belarusian counterpart Alexander Lukashenko, adding that talks were continuing “practically on a daily basis,” according to Reuters.

At the same time, the Kremlin left a window for a meeting between the Russian president and the president of Ukraine, Volodymyr Zelensky.

“No one rules out the possibility of a meeting between Putin and Zelensky. Yes, it is indeed possible,” said Kremlin spokesman Dmitry Peshkov. “But first, both the delegations and the ministers of the two countries must do their duty, so that the presidents do not meet for the sake of the process and the discussion, but to meet for a result,” he added.

The pan-European Stoxx 600 index rose 1.25% to 432 points, while after the statements of the Russian president it had reached a strengthening of 2.2% to 435.41.

The German DAX gained 2% to 13,705 points, the French CAC 40 rose 1.2% to 6,280 points, while the British FTSE 100 gained 0.85% to 7,160 points.

In the periphery, the Italian FTSE MIB and the Spanish IBEX 35 gain 1.2% and 1.6% respectively.

The indices moved slightly higher since the start of trading, attempting an upward reaction after the heavy losses on Thursday that followed the European Central Bank risk bell for inflation.

The ECB has lowered its estimates for growth and revised its inflation forecasts upwards, warning that prices could exceed 7% in 2022 in the worst case scenario. In this context, the central bank decided to launch its closure Regular Bond Purchasing Program (APP) in the third quarteralthough it left a window open to continue shopping in the program if necessary.

At the same time as the ECB announcements, the data that saw the light of day in the US showed a new jump in inflation to 7.9% in February. This is the highest level since January 1982.

The Russian invasion of Ukraine and the barrage of Western sanctions against Moscow have intensified upward pressure on energy, food and minerals, which is expected to lead to a new jump in inflation in the coming months. This has rekindled concerns that central banks could tighten monetary policy faster than expected, slowing growth.

Source: Capital