Daily summary: Global stocks rise as fears of Russian attack on Ukraine subside

• European stocks rebound sharply
• Upbeat moods on Wall Street
• Russia appears to be backing away from an immediate invasion of Ukraine

European indices finished today’s session in euphoric moods due to numerous positive information about the ongoing tension between Russia and the West. In the early morning, news that some Russian troops started returning to headquarters lifted market sentiment. The Russian Defence minister said that some Southern and Western military districts units have completed their exercises and begun returning to bases, signaling some de-escalation of the military build-up on Ukraine's border. Another positive factor was the meeting of Chancellor Scholz and President Putin, who jointly approved a democratic solution to the dispute. Putin admitted that he does not want a war in Europe and emphasized that he wanted to talk about the potential accession of Ukraine to the NATO alliance, however is concerned that the dialogue between the parties might eventually come to a standstill. This may be a sign that tensions between both sides may still escalate in the future. Nevertheless DAX ended today's session almost 2% higher, CAC 40% added 1.86% and FTSE100 rose 1.03%.

Major Wall Street indices also benefit from the improved geopolitical situation. The NASDAQ index gains almost 2%. The bullish moods are also observed on other US indices. However, it is worth remembering that the situation is very dynamic and just one headline may completely change the market's behavior. Right before the end of today's US session, President Biden will comment on the current geopolitical situation. On the data front, January PPI reading from the US turned out to be weaker than analysts' consensus. Monthly producer inflation increased by 1% in January compared to market expectations of 0.5%. The core reading also showed an increase in inflation to 0.8% while analysts expected 0.5%. The New York Empire State index also surprised negatively.

Downbeat moods prevail today in commodity markets amid weaker dollar and higher treasury yields. US 10-year Treasury yield jumped to 2.04%, while gold pulled back from recent high at $1880 and tested $1845.00 level. Meanwhile silver fell nearly to $23.00 however managed to erase some of the losses later in the session. WTI price plunged more than 4% following Putin comments. Major cryptocurrencies move sharply higher on Tuesday. Bitcoin rose over 4% and trades above $42 500 while Ethereum broke above $3100 level.

RUS50 has been moving downward since the end of October, although buyers managed to halt declines around 1260 pts level at the end of January. Index launched an upward correction at the beginning of the month, however market bulls struggle to overcome major resistance between 1483.5 pts and 1524.0 pts, which is marked with previous price reactions, downward trendline and 38.2% Fibonacci retracement of the last upward wave. As long as the price sits below, the aforementioned zone, the main sentiment remains bearish. Source: xStation5