February 5, 2023

Shares will wither as investors see less confidence in the Russia-Ukraine talks

  • Euro STOXX 1.7% fall
  • Senior Russian and Ukrainian officials are in talks in Turkey
  • Analysts are less likely to calm down
  • The Nikkei is up 3.8%, the best in almost 21 months
  • Oil prices are rising and the euro is holding profits

LONDON / BEIJING, March 10 (Reuters) – Stock markets rallied on Thursday as analysts warned that even after planned diplomatic talks between Moscow and Kiev, there would be no immediate end to the war in Ukraine and further pain for the stock. Dangerous challenge.

European stocks fell 1.7% with indices in Germany (.GDAXI) And Britain (.FTSE) Lost 1.9% and 0.9%, respectively, and a reversal after future measurements suggested slim gains in early trade. Vehicle manufacturers (.SXEP) Most affected, falling 0.9%.

The foreign ministers of Russia and Ukraine will meet in Turkey on Thursday in the first high-level talks between the two countries since Moscow invaded its neighbor, hoping Ankara could mark a turning point in the conflict. read more

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The possibility of negotiations boosted the broader index of MSCI’s Asia-Pacific shares outside Japan. (.MIAPJ0000PUS) 1.8% with Tokyo (.N225) Adding 3.9%, June 2020 is its best day since.

Analysts say Asia’s gains have always been sharply volatile after Wednesday’s the best day for European stocks in nearly two years.

“Opportunity for peace, an immediate expansion, really skyrocketing,” said Michael Hewson, chief market analyst at CMC Markets.

“Like any bear market, you always get face-to-face rallies because people are reluctant to be aggressively pessimistic.”

However, in the run-up to the European Central Bank meeting, the euro may shed light on the camp’s monetary and financial response to Russia’s invasion, almost six years from its steady daily flow. read more

The single currency last fell 0.3% to $ 1.1046.

Other EU talks are set to take place as the leaders hold initial discussions on a joint investment plan to enhance the camp’s independence in security and energy at the summit starting Thursday evening.

U.S. inflation figures are also coming in, which will further guide expectations for next week’s Federal Reserve meeting.

The Wall Street futures are down about 0.5% after the S&P 500 released its biggest one-day percentage gain since June 2020 on Wednesday. read more

“As investors assess the impact of the Ukraine conflict on inflation and potential Fed action, US stocks may be in a more volatile form,” said David Chao, a global market strategist with Invesco’s Hong Kong – based.

MSCI Global Equity Code (.MIWD00000PUS)Shares in 50 countries rose 0.2%.

Oil levels

Oil remained stable after falling more than 12% in the previous session, as investors weighed in on whether large producers would increase supply to help close the production gap from Russia, which has been triggered by sanctions.

Brent crude was up 3% at $ 114.64 a barrel on Thursday, while US crude was up 1.73% at $ 110.58.

The Kremlin on Wednesday accused the US of declaring an economic war on Russia, which is sowing chaos through energy markets, and announcing to Washington that it is considering its response to Russia’s embargo on oil and energy. read more

EU leaders will also gradually stop buying Russian oil, gas and coal, following a US embargo that seeks to reduce Russia’s reliance on energy sources, the draft announcement said on Thursday. read more

Higher energy prices have been given in line with expectations that the US Federal Reserve will raise interest rates by 25 basis points at its policy meeting next week.

U.S. consumer inflation is expected to show up later in the day in the 7.9% annual clip in February.

The dollar index was up 0.2% at 98.234, falling 1.2% overnight amid a rise in the euro and stocks.

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Report by Tom Wilson in London, Stella Q in Beijing and Alun John in Hong Kong; Editing by Sam Holmes, Raju Gopalakrishnan and Raisa Kasolovsky

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