Global stocks rise on easing tensions in Ukraine and cheaper oil | News
TOKYO (AP) — Global stocks rose on Wednesday, buoyed by hopes that a diplomatic solution could head off a Russian invasion of Ukraine.
The French CAC 40 edged up 0.7% in early trading to 7,030.39. The German DAX rose 0.8% to 15,540.97. Britain’s FTSE 100 gained almost 0.2% to 7,621.99. The Dow Industrials Future was 0.3% higher at 34,996.00. The S&P 500 future rose 0.3% to 4,475.75.
But analysts have warned that tensions are far from fully resolved and the situation remains volatile.
“In short, provided we get another geopolitical break, perhaps we could focus on worrying data instead. But I would be cautious in assuming we will be able to for a long time,” said RaboResearch in a report.
In Asia, Japan’s benchmark Nikkei 225 jumped 2.2% to end at 27,460.40. Australia’s S&P/ASX 200 rose 1.1% to 7,284.90. The South Korean Kospi jumped 2.0% to 2,729.68. Hong Kong’s Hang Seng gained 1.5% to 24,718.90, while the Shanghai Composite gained 0.6% to 3,465.83.
The Chinese government announced that consumer prices rose 0.9% year on year in January, while prices for goods leaving the factory rose 9.1%.
China has been hit by the same supply disruptions that are driving up prices in the United States and Europe, but the impact on Chinese consumers has been less. January inflation was down from December’s 1.5%. Forecasters expect it to fall further.
Russia has announced that some units taking part in military exercises around Ukraine will start returning to their bases. Later in the day, Russian President Vladimir Putin said Moscow was ready for talks with the United States and NATO on military transparency and other security issues. Still, President Joe Biden said on Tuesday that the United States had yet to verify Russia’s claim of a troop withdrawal.
Investors braced for the US Federal Reserve to start raising interest rates to fight inflation. The central bank is expected to start raising rates in March and traders see a 61% chance for an initial half-percentage-point hike, double the traditional move.
Rising costs have hampered seaming operations for a wide range of businesses and prompted many to raise prices for finished goods, from clothing to food. This raised concerns that consumers could eventually cut spending, which would hurt economic growth. Investors will receive an update on retail sales on Wednesday when the Commerce Department releases its January report.
Investors also have their eye on the latest round of corporate earnings, including DoorDash on Wednesday and Walmart on Thursday.
In energy trading, benchmark U.S. crude jumped $1.09 to $93.16 a barrel in electronic trading on the New York Mercantile Exchange. It fell 3.6% on Tuesday. Brent crude, the international standard, added $1.20 to $94.48 a barrel.
Oil prices have been volatile amid tensions over Russia potentially invading neighboring Ukraine. Russia is a major energy producer and military action that disrupts supplies could shake up global markets and industries.
In currency trading, the US dollar fell from 115.63 yen to 115.75 Japanese yen. The euro traded at $1.1387, down from $1.1362.
AP Business Writer Joe McDonald in Beijing contributed.
Copyright 2022 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed without permission.