European stock markets bounce back; S&P 500 hits new high – as it …
FTSE 100 over the last three months. Photograph: Thomson Reuters
Anyone returning to the City tomorrow morning after four days of solitude in a cave might not suspect the last few days had been quite so dramatic.
The FTSE 100 has raced ahead today to close up 115 points at 6823, a rise of 1.7%. That more than wipes out yesterday’s 101-point tumble.
Biggest risers on the FTSE 100 tonight.
In Germany, the DAX surged by 230 points, or 2.46%, after plunging almost 3.5% on Monday on the prospect of disruption to Germany’s business links with the Russian economy.
The Italian FTSE MIB was the outstanding in the EU performer, jumping 3.6%, while France’s CAC gained 2.4% and Spain’s IBEX rose 2.5%.
John Kerry’s blunt message to Putin this afternoon to row back from his Crimea adventure came in the final minutes of trading, so couldn’t really be digested.
But the general market view is that the situation is less likely to blow up into a full-blown military clash, or to stunt the global economy.
Michael Hewson of CMC Markets was reminded of an earlier military escapade::
After this morning’s news that Russian forces had been pulled back from the Eastern Ukrainian border, markets have executed a sharp about turn in the manner of the Grand Old Duke of York as having been marched down the hill yesterday they got marched straight back up again, with the mood given added impetus by a press conference from Russian President Putin, when he stated he wasn’t looking to annex the Crimea and that additional troops would only be sent into Ukraine under extreme circumstances and in observance of international law.
There has been speculation that Putin may have blinked in the face of political pressure from the West, but it is more likely, having seen the financial market meltdown that battered Russian assets yesterday, he was persuaded by sources closer to home that it might be wiser to look for an exit strategy, as Russian oligarchs saw the value of the wealth eroded sharply.
But with troops still in Crimea, Hewson adds, you’d be foolish to think more twists and turns don’t lie ahead.
Highlights from Putin’s press conference today
Chris Beauchamp, Market Analyst at IG, agrees that Putin’s press conference calmed investors worldwide:
The strong open was solidified after a press conference from Russia’s president Vladimir Putin, which he conducted in his own unique style, speaking without notes and looking like a man who was in control of events (and knew it).
Mr Putin seemed to hint that he was determined to avoid a military confrontation, and his calming words did much to reassure jittery markets. Thankfully for all concerned, the situation seems calmer than it did 24 hours ago.
More –
European stock markets bounce back; S&P 500 hits new high – as it …
See which stocks are being affected by Social Media
