- Global stocks gathered Wednesday in a volatile trade ahead of key talks between the US and European partners this week.
- The pound depreciated after higher inflation data was added to the UK's negative economic outlook.
- Brent crude has reached $ 120 a barrel due to the breakdown of a pipeline from Turkey to the shores of the Black Sea of Russia.
International stocks rose sharply on Wednesday, gaining momentum in the minds of investors ahead of President Joe Biden's talks on sanctions with European leaders this week.
At the time, the pound was declining after official data showed inflation in the UK reached 30 years in February.
The MSCI All-World index was up 0.16%, while in Europe, the Stoxx 600 was down 0.2%, covering pre-existing gains due to pressure on banks and stocks. The two indices increased by 1% and 2%, respectively last week.
Biden will meet with key partners in Brussels and Warsaw on Thursday to discuss further sanctions in Russia and to prevent further escalation of hostilities in Ukraine.
"Equity markets have risen, and the biggest feeling in the midst of the turmoil in the world," said Susannah Streeter, a strategist at stock exchange Hargreaves Landsdown.
"All eyes will be on tomorrow's meeting between President Biden and European leaders, where sanctions will be expected to increase the pressure on Moscow to end the war," he said.
The US and its allies will impose more sanctions onnational security adviser Jake Sullivan said on Tuesday.
Russia and introduce measures to strengthen existing sanctions,
US stock futures on the S&P 500, Dow Jones and Nasdaq 100 were in a modest position, down between 0.2 and 0.3% per day. In the market, GameStop exceeded 12%, after earning a profit of 30.7% on Tuesday, as Chewy founder Ryan Cohen amassed more stock in the video game retailer.
The pound fell by about 0.1% against the dollar after data showed that UK consumer inflation reached a 30-year high of 6.2% year-on-year in February. It adds to the cost of living in Britain, where electricity bills, gas prices, and taxes are all rising. It also added to the chances that the Bank of England would raise interest rates again in May.
Worse still, forward-looking inflation figures suggest that pressure on consumers will be even worse, analysts say.
"This is likely to be of great concern to the Bank of England, which, while issuing a hotline last week, may need to tighten its grip, if at all
Federal Reserve it starts to get stronger, to keep it below the pound, "said CMC Markets strategist Michael Hewson.
Bond yields have plummeted, as they have risen this week following a shocking hawk's speech from Federal Reserve Chairman Jerome Powell. The yield on the German 10-year Bund fell 4 points to 0.467%, while the 10-year UK cut to 1.67%, indicating uncertainty over the UK economic outlook. The US Treasurys for a decade was stable at about 2.37%.
Brent crude went back to $ 120 a barrel on Wednesday, up 1.6% to $ 117.33 a barrel. Tuesday's data showed a sharp decline in already US raw materials, and severe weather has reduced the flow from the main pipeline from Turkey to the Russian Black Sea port in Novorossiysk.
EU leaders are considering following Biden's leadership lead to a ban on Russian oil exports, and any issues in this regard could include instability in the market.
"Russian raw materials and products are still entering the market at a different level, but our understanding is that this is raw and the products already contracted before the attack," SEB strategist Bjarne Schiedrop wrote.
"Next up is the posting of Russia in April, and when we see the canceled goods and the problems of Russia getting buyers," he said.
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Courtesy Grizler.com
