The markets ignore the veto of the United States and the United Kingdom on Russian energy imports, which raised fears of a new rise in prices. The rebound was fueled in part by buying after last week’s sharp declines.
“Market players feel a little better about the Russian-Ukrainian situation. Everything is relative but the upward trend reflects a growing hope for a diplomatic solution”noted Patrick O’Hare of Briefing.com.
Thus, the CAC 40 index in Paris jumped 7.1%, the Dax in Frankfurt 7.9% and the FTSE MIB in Milan 6.5%. In Madrid the Ibex-35 gained 4.9%.
For its part on Wall Street, the Dow Jones rises 2.3%, the S&P500 advances 2.7%, and the Nasdaq gains 3.1%.
The financial sector gained 3.4% after falling 6.3% in the last four sessionsas market participants worried about the impact of Western sanctions on Russian banks, assets and individuals over the invasion of Ukraine.
The S&P 500 banking index added 4.5%, boosted by a 5.4% rise in Bank of America.
Mega-cap shares of Amazon.com Inc, Apple Inc, Microsoft Corp, Alphabet Inc, Meta Platforms and Tesla Inc gained between 1% and 2.6% to provide the biggest boost to the S&P 500 and Nasdaq indices.
Meanwhile, travel and leisure stocks rose the most. Carnival Corp and United Airlines Holdings soared 9.6% and 9.8%, respectively, after plummeting this week as rising oil prices threatened a nascent recovery.
The energy sector was the only sector to post a decline, down 3.4%, as oil slipped below $125 after a strong rally this week that helped it climb above $130 a barrel.
Rising crude prices have rattled global markets, with investors fearing it could lead to higher inflation and sluggish economic growth as global central banks seek to tighten monetary policies.
The Federal Reserve is widely expected to raise interest rates at its March 15-16 meeting.
Source: Ambito
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