Global Stocks Jump as Gold, Oil Fall on Ukraine Ceasefire Optimism

The main world stock markets react with clear increases to the signs of a ceasefire in the conflict in Ukraineafter the advances in the negotiations between both diplomatic delegations in the city of Istanbul, Turkey.

Moscow said it was taking steps to “reduce escalation” of the conflict in Ukraine, pledging to reduce military operations near kyiv and Chernihiv. At the same time, the Kremlin offered the possibility of a meeting between the presidents of Vladimir Putin and Volodymyr Zelensky, triggering optimism about a peace agreement.

Preliminary information also suggests that Ukraine would not join NATO but would have Russia’s permission to formally join the European Union.

“They are looking at how the market might respond to the de-escalation,” Shawn Cruz, senior market strategist at TD Ameritrade Inc., told Bloomberg.

“I think we will get more headlines about slow but sure progress and discussions about at least being willing to come to the negotiating table will become more frequent, and that will be the driver of intraday volatility.”

Wall Street

In that context, the global stocks grouped in the index MSCI World They climb 1.6% to maximums since the middle of last February. The stock markets of Europe, the hardest hit in the world after the start of the military conflict, closed with average increases of 2.96%. The Paris Cac rose 3.06%.

On Wall Street, the world’s main benchmark, the shares grouped in the Dow Jones rose 0.83% a few minutes before closing, while the S&P 500 scored a gain of 1.27%, with 11 of the main industrial groups advancing , except energy. The Nasdaq 100 rose more than 1.5%, while Apple rose for the eleventh day, heading for the longest winning streak since 2003.

Wall Street

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Wall Street

“This is the first time during this conflict that we have seen any indication of a form of easing of military actions by Russia,” SEB analyst Bjarne Schieldrop told AFP.

“Until now Russia has been very firm in its objectives,” he added.

“It will boost optimism (in stock markets) because it shows that both sides are talking and as a result there will probably be some kind of conclusion in the short term,” Sam Stovall of CFRA Research was quoted as saying by Reuters.

In parallel, the orothe quintessential safe-haven asset, experienced a drop of 0.18% in London at the close of this edition, while the prices of the Petroleum they collapsed around 2%, although at some point in the day they collapsed by close to 5%.

It must be remembered that crude oil and gas have been the raw materials that more have moved to the eaves of the war that has already left a balance of 20 thousand fatalities and 10 million people displaced from their homes.

They are not the only signs of lower risk. indicator Much Ado of the Chicago Stock Exchange, better known as the “fear index”, registered a contraction of 4.28%, to a minimum since last January 12.

IPSA awaiting the Central Bank

The Santiago Stock Exchange did not add to the global trend and is moving away from the 5,000 points that it was close to crossing yesterday. The ITSELF experienced a decline of 0.49% to 4,914 units.

Central Bank Counselor

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Central Bank Counselor

“The IPSA continues the day in a pessimistic manner, registering drops of 0.49%, reaching 4,914, very close to the important support level at 4,900. If it respects these levels, we could see it in the coming days looking for 5,000 points as a key resistance level. Stocks such as CMPC and vapors had falls of close to 3%, marking a somewhat negative day for the local market”, said José Tomás Riveros, market analyst at Capitaria

Regardless of the international situation, local investors are waiting for the monetary policy meeting of the central bank that should decide on the interest rate. Bets point to an increase of between 175 and 200 basis points.

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