Shares rise after “encouraging” Russia-Ukraine talks

Traders work on the floor of the New York Stock Exchange (NYSE) in New York City, USA on March 29, 2022. REUTERS / Brendan McDermid

NEW YORK / LONDON, March 29 (Reuters) – Global stock markets rallied and global borrowing costs rose on Tuesday as the first face-to-face talks between warring Russia and Ukraine showed signs of progress in nearly three weeks. ۔ Read more

The U.S. stock index rose more than 0.5 percent, Europe’s main markets rose 1 percent to 2.5 percent, and oil fell 4 percent as Russia’s deputy defense minister said Moscow had closed the Ukrainian capital, Kyiv, and Chernihiv. Has decided to drastically reduce military activity around Read more

Wall Street looked set to maximize the three-day gains. Asia was lifted overnight after the Bank of Japan defended its broad stimulus program, even though the yen’s worst month since 2016 was still raising eyebrows. / FRX

Dealers have also halted unexpected declines in French and German consumer confidence figures and signs that Russia will move ahead with plans to start billing for its gas in rubles, and historic sovereign debt. Is ready to take the risk of default. Read more

Germany’s benchmark 10-year closed yield – a key estimate of European borrowing costs – reached its highest level since early 2018 and the 2-year yield turned positive for the first time since 2014, in global price markets this year. Earthquake changes have increased as inflation has risen. Increased

US Treasury yields stalled on Tuesday, but rose 165 basis points this quarter.

The benchmark 10-year U.S. Treasuries were at 2.426% while the equivalent 2-year yield was 2.38%. It will be the most. Calendar year from 1994.

The difference between the 2- and 10-year Treasury yields also looks good on the way to negative for the first time since 2019.

This is the so-called curve reversal that is considered a reliable predictor of recession, although the US Federal Reserve has urged investors to look at other curves that are still standing, further tightening policy. And there is room for acceleration.

“We’ve seen something that is a bit unprecedented because the Fed is suddenly facing a question about its credibility and whether it is affecting inflation,” said Francisco Sandrini, head of Amundi’s multi-asset strategy. Can reduce the way, “said Francisco Sandrini.

He added that Amundi had revised its European growth forecast for the year to 1.5 per cent from 2 per cent earlier, but that this could be reduced if the situation continues to worsen.

“We raise a lot of questions about our forecasts,” said Sanderini, “especially when major European companies are more vulnerable to commodity price pressures than their American counterparts.” “It’s very complicated, we need to proceed with caution.”

Better Yen

The Dow Jones Industrial Average (.DJI) rose 0.59%, the S&P 500 (.SPX) rose 0.50%, and the Nasdaq Composite (.IXIC) rose 0.73%. Worldwide, MSCI’s stock gauge (.MIWD00000PUS) rose 1.03%.

The three main S&P 500, Dow Jones and Nasdaq indices are due to expire in late March. However, they are also set to record their worst start in a year, and in fact in any quarter since the beginning of 2020 when the outbreak of the Corona virus epidemic wreaked havoc on financial markets.

Japanese stocks (.N225) closed up more than 1% in Asia overnight, although both Chinese stocks and oil fell as Shanghai continued to lock down to cope with the rise of COVID-19.

The Tokyo rally came as the Bank of Japan vowed to continue its stimulus, and offered to buy an unlimited amount of 10-year government bonds to keep its bond yields from accelerating. ۔

However, the central bank found this difficult. The 10-year JGB yield was 0.245%, well above the BOJ’s 0.25% threshold.

That did not help the yen, which was at 2 122.54 per dollar, even after a slight recovery from its injury the day before.

Japan’s top diplomat for the currency, Masato Kanda, told reporters on Tuesday that “excessive volatility and volatile currency movements could damage economic and financial stability.” Confirming the commitment to discuss issues closely.

Elsewhere, trade was cut short. APAC Chi Lu, senior market strategist at BNP Paribas Asset Management, said investors would support markets that are behind the Fed rate hike, working on a “daily trading mindset” amid market turmoil and short-term developments. Are doing

“There is really no medium-term direction that the market is following,” he said.

Among other things, oil prices plunged another ڈالر 4 as Russia’s top negotiator in Ukraine called the talks “constructive.” Brent fell 3.8 percent to $ 108.22 a barrel and US WTI $ 102.04.

Prices have already weakened as China’s financial center Shanghai tightened its latest COVID-19 lockdown after a record 4,381 non-symbolic cases and 96 symbolic cases were reported for March 28 – albeit by international standards. The case load is light. Read more

“Certainly, the closure of China will not ease commodity markets in the short term,” Lu said. He said many observers expect growth to be less than 5% for the world’s second-largest economy this year, a view he described as “very disappointing” given expectations of strong stimulus measures.

Spot gold fell 0.8 percent to 90 1,907.08 an ounce.

Additional reporting by Selena Lee in Hong Kong, editing by Ed Osmond, Andrea Reiki and Jonathan Oates

Our Standards: The Thomson Reuters Trust Principles.