Stocks Fall Back, Oil Rebound as Peace Talks Halt
Stock exchanges on Friday breathed a sigh of relief after several days of significant gains. Geopolitical tensions stemming from the Ukraine conflict forced investors to exercise caution over the weekend. The fourth day after negotiations between the Russian and Ukrainian negotiators without tangible progress, the early hopes for a peace agreement are diminishing. Consequently, oil prices started to rise again. U.S. President Joe Biden is likely to warn that Beijing will pay the price if it supports Russia’s military efforts when it talks to the Chinese president.
MSCI’s broadest Asia-Pacific stock index outside Japan remained unchanged. Hang Seng remained stable after two days of furious growth. The Nikkei rose 0.6%. S&P 500 futures fell 0.4%. Euro STOXX 50 and FTSE futures were unchanged.
Oil, which fell 30% from last week’s peak, rose sharply. Traders are worried that hope for peace in Ukraine is out of place. Brent oil futures were at $108.64, up 2% overall. That added more than $10 a barrel in two sessions. According to experts, it is tough to guarantee that you will be able to deliver reliable goods from Russia or Ukraine. Wheat and corn futures have risen sharply.
Stocks and Risks
The heavy ASX 200 index for the Australian miner recorded the best week since February last year. Commodity-sensitive Australian dollars reached a two-week high of $0.7398. The problems faced by policymakers whose economies are experiencing rising inflation; Also declining growth were highlighted in a series of central bank meetings this week.
The U.S. Federal Reserve raised interest rates in more than three years on Wednesday for the first time. It also surprised traders with a sharper-than-expected prospect. On Friday, the Bank of Japan had no surprises, so the policy is straightforward, keeping intense pressure on the yen.
This week, the Japanese currency hit a six-year low of 119.13 and ended the last trade at $118.78. The target of the next multi-session may be the 120.00 psychological level. The euro was at $1.1086. It is worth noting that Hang Seng followed in Its worst session in over six years. The biggest two-day rally since 1998 this week and hopes for lower rates kept it afloat on Friday.
Treasury has been maintained, but the flat yield curve reflects concerns about long-term growth. The Treasury’s 10-year benchmark yield was 2.1780%. Spot Gold was at $1,932. Bitcoin recorded a figure of more than $40,000.
