Stock prices rose on the US and European stock exchanges on Tuesday, but oil prices fell as investor fears about Russia’s expected invasion of Ukraine eased.
Russia hoped to de-escalate tensions with the West, announcing that it was withdrawing some of its troops concentrated on Ukraine’s border.
Western leaders welcomed the announcement, but called for a check on whether the withdrawal was taking place. US President Joe Biden said Russia’s attack on Ukraine was still “largely” a possibility, but a diplomatic solution to the crisis remained.
“Although the risks remain high, this looks like a big step in the right direction and investors, like everyone else, are sighing with relief,” said Craig Erlam, senior market analyst at OANDA.
Investors were also worried that the US Federal Reserve (FRS) could take a more aggressive stance in raising interest rates to curb inflation.
However, US stock markets paid little attention to government data that producer prices in the country rose by 1% in January, followed by a 0.4% rise in December.
Oil prices, which had reached seven-year highs during Ukraine’s crisis, fell more than 3% on Tuesday. Russia is a major exporter of oil and natural gas.
Wheat prices also fell on Tuesday. Russia and Ukraine are important wheat growers and exporters.
The Dow Jones Industrial Average rose 1.2% to 34,988.84 points on Tuesday, the Standard & Poor’s 500 rose 1.6% to 4471.07 points and the Nasdaq Composite index rose 2.5% to 14,139.76 points.
The London Stock Exchange index FTSE 100 rose 1.0% to 7608.92 points on Tuesday, the Frankfurt stock exchange index DAX 30 rose 2.0% to 15,412.71 points, while the Paris stock exchange index CAC 40 rose 1.9% to 6979 .97 points.
In the New York Stock Exchange, the price of WTI crude oil fell 3.6% to $ 92.07 a barrel on Tuesday. The price of Brent crude oil fell 3.3% to $ 93.28 a barrel on the London Stock Exchange.
The euro rose from 1.1307 to 1.1361 dollars per euro on Tuesday, the British pound rose from 1.3528 to 1.3541 dollars per dollar, and the US dollar rose from 115.54 against the Japanese yen. to 115.62 yen per dollar. The euro appreciated against the pound sterling from 83.58 to 83.88 pence per euro.
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