Oil prices fell sharply at first, but rose back above $100 a barrel in early European trading. [O/R]
The jump in equities was modest, however, and markets remained significantly below levels at the start of the week, after investors were stunned by Russian President Vladimir Putin’s decision to invade Ukraine.
On Friday, missiles pounded the Ukrainian capital as Russian forces continued their advance.
Around 9:30 GMT, the Euro STOXX was up 0.72% while the FTSE 100 gained 1.1%. The German DAX rose 0.05%.
Asian stocks closed higher. But Wall Stock Exchange – where stocks saw a massive rebound after US President Joe Biden unveiled the sanctions on Thursday – futures pointed to a lower US open.
“The markets seem to be reducing extreme risks. The additional sanctions announced against Russia are important for Russia, but the Russian domestic economy does not matter much for the global economy (and energy supplies continue to dwindle). pouring in),” said Paul Donovan, chief economist at UBS Global Wealth Management.
In Asia, MSCI’s broadest index of stocks in the Asia-Pacific region excluding Japan closed up 0.78%, the Shanghai Composite Index rose 0.63% and the Japanese Nikkei gained 1 .95%.
Russian stocks soared 14%, but that followed one of the three biggest stock market crashes in history in a single day.
OIL PRICE
Oil prices started to climb again on worries about supply disruptions, with Brent rising 1.1% to $100.2 a barrel, while West Texas Intermediate was up 0.46% 93, $29, although both indexes are off their highs.
Safe haven gold, which surged Thursday, rose 0.35% to $1,909 an ounce after hitting a multi-month high of $1,973.96.
Reflecting the relative calm in financial markets, the yield on 10-year US Treasury bonds stood at 1.944% after an initial drop of 1.84% on Thursday, its biggest daily drop since late November.
After dramatic moves in the currency markets on Thursday, including falls of more than 1% in most European currencies, currency prices were much calmer.
The Dollar Index, which measures the greenback against a basket of major currencies, was little changed at 97.185, after hitting levels on Thursday not seen since the first wave of the coronavirus pandemic.
The Russian ruble rose to 85.52 against the dollar, after hitting a record low of 89.986.
As Russian troops close in on the Ukrainian capital and more casualties are expected on both sides, many investors are bracing for a further tightening of Western sanctions.
“While US sanctions have been limited so far, given the escalation of Russian actions, there will inevitably be a more strident Western response in the coming days. Germany having halted approval of the Nord Stream 2 gas pipeline,” said Seema Shah, chief global strategist, Principal Global Investors.
“While difficult, during a rapidly developing geopolitical conflict, investors are in the best position to stay balanced, considering fundamentals ultimately drive long-term investment returns.”