- European stocks mixed as investors eye Ukraine
- Powell comments weigh on Wall Street and support US dollar
- Potential EU ban on oil imports from Russia
European indices finished today's session in mixed moods as peace talks between Ukraine and Russia showed little progress. Ukraine has rejected an ultimatum to surrender the strategic port of Mariupol, and President Zelensky warned that if negotiations with its Russian counterpart fail, it could start a third global war. The Ukrainian president also said any compromises with Russia will need to be put to a referendum. On the economic front, German producer prices rose less than expected in February, slowing to 1.4%.
Major Wall Street indices took a hit following hawkish comments from FED Chair Powell. Central bank will take the necessary steps to get inflation down even if that means increasing interest rates by more than 0.25% at a meeting or meetings and eventually to levels that slow the broader economy, Powell said in comments at NABE conference in Washington. The Fed now sees rate hikes at each of the six remaining meetings this year, with the fed funds rate reaching 1.9% by year’s end. On the corporate side, Boeing shares dropped over 5% after a China Eastern Airlines Boeing 737 passenger plane crashed.
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Create account Try a demo Download mobile app Download mobile appUpbeat moods prevail on the commodity market, supported by geopolitical turmoil. Oil prices continued their three-day rally and returned above $ 110 a barrel. European ministers consider an embargo on Russian energy imports, which is gaining support among EU members according to WSJ. BRENT oil soared above the $ 115 barrier, despite more positive signs regarding the nuclear deal with Iran and rising number of new covid cases in China (which could dampen demand in that part of the world). Agricultural commodities recorded gains, supported by the constantly rising prices of fertilizers. Precious metals also moved higher, despite stronger dollar higher treasury yields. US 10-year Treasury yield jumped to 2.30%, the highest level since May 2019. Meanwhile gold price rose above $ 1,930 and silver bounced off support at $25.00.
USDJPY pair broke above 119.00 level for the first time in six years following Powell's hawkish comments. Source: xStation5
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