Progress in the peace negotiations has been "warmly welcomed", in a sense, by markets with stock markets recording gains and commodity prices falling sharply.
Wall Street opened with strong gains given the first interest rate hike after 2018 by the Fed to curb inflation.
Among the highlights of yesterday is the recovery of the Russian currency by 12%.
According to analysts, this is happening as investors see a buying opportunity in rubles in case of normalization of the situation.
Accuracy is largely driven by energy prices. As a result of the wider positive climate, prices moved downwards.
Oil prices per barrel
High Low 18:00
Brent: $ 104 $ 97 $ 99
WTI: $ 99 $ 94 $ 96
European gas: € 105
Norway has stated that it will increase gas production and supply in Europe and this is an additional reason that drives down prices.
According to the Investment Strategy Manager at Exclusive Capital, Vrasida Neophytou, the so-called "demand destruction" is expected, the automatic correction of the market through the reduction of demand, due to the increased prices.
"In oil, the ideal price or the equilibrium price that leaves a profit to the producers but also to the satisfied buyers is set at around $ 70 a barrel, with the current data," he notes.
The climate of optimism is also reflected in the prices of cereals, which recorded large reductions yesterday, as well as some metals.
- Wheat: -7,5%
- Corn: -4%
- Gold: -1%
- Silver: -1%
- Nickel: -5%
- Palladium: -1%
- Aluminum: + 1%
- Copper: + 2%
According to Brasidas Neophytou, "the rise of copper and aluminum is a result of the Chinese government's moves to support its economy from the effects of the new coronavirus wave that has led to lockdowns, cities that are considered economic and industrial centers, such as Shenzhen." .
Source: Economytoday