- Equity markets rise significantly driven by lower expectations of war.
- Russia announced the return of “some” troops to their bases by activating a rally.
- Oil plummets after the announcement.
The Wall Street futures are trading sharply higher on Tuesday, boosted by the return of “some Russian troops” to their bases.. The S&P 500 rises 1.55%, the Dow Jones 1.22% and the Nasdaq more than 2%. At the same time, bonds fall sharply, given an improvement in market sentiment.
In Europe, the main stock markets also seem to celebrate the announcements related to Russia and Ukraine, and the increases exceed 1.25%. The good weather led to a significant rise in government bond yields in both the US and Europe. The US 10-year rate jumped back over 2% and the 30-year rate topped 2.30%, with both tranches near their highs in recent years.
The advance in yields affected metals. Gold has its worst day in weeks, losing almost 1%. The correction from monthly highs near $1,880 an ounce extended to levels below $1,850. Silver falls 2.25%.
Among the coins, the dollar it is affected by risk appetite and is one of the weakest, along with the yen. However, the pullback is still moderate. Important US data will be released at 13:30 GMT, including wholesale inflation data for January.
The Petroleum was hit by news on the Ukraine border and falls more than 3%. The barrel of WTI has corrected from its maximum in years near $94 to test the $90 zone.
Technical levels
Source: Fx Street
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