Global stock markets are finally showing signs of rising after posting losses for 3 consecutive days as oil prices retreated from last week’s peak following the United Arab Emirates’s (UAE) readiness to increase its oil supplies.
In addition, Moscow accused the United States (US) of starting an economic war with it and was ready to respond to sanctions imposed on Russian oil and energy imports.
In addition, the war conflict is showing signs of complacency when Russian Foreign Minister Sergi Lavrov will hold diplomatic talks with Ukrainian Foreign Minister Dmytro Kuleba in Turkey.
Stock Market In Recovery
The MSCI world equity index that tracks stocks in 50 other countries rose 2.91%.
On Wall Street, the Dow Jones Industrial average index rose 778.14 points or 2.38% at 33,410.78, the S&P 500 hit 123.57 points or 2.96% at 4,294.27 and the Nasdaq Composite added 493.33 points or 3.86% at 13,288.89.
STOXX 600 Europe rose 4.68%.
Meanwhile, economists expect the rate hike to be delayed until the end of the year ahead of the European Central Bank (ECB) meeting on Thursday following the threat of stagflation that has led to rising prices but sluggish growth.
The euro rose 1.61% to $ 1.1074 following a European Union (EU) report that discussed the issuance of bonds to finance energy and defense spending while the dollar index fell 1.18%.
German government bond yields rose and U.S. 10 -year treasury yields stood at 1.925% following a U.S. jobs report falling 185.00 to 11.263 million in January.
OPEC Decision Affects Oil Prices
Oil prices fell 17% after OPEC member UAE announced support for increased supply to markets disrupted by sanctions against Russia.
As a result, the international oil benchmark for Brent crude closed 13.16% lower at $ 111.14 a barrel while US crude closed down 12.13% at $ 108.70 a barrel.
According to Commonwealth Bank of Australia’s head of international economics, Joseph Capurso said there was huge movement in the market with equities still weak and oil still strong.
He added that the cause of the large movement was signs that Ukraine might accept Russia's demands in exchange for security guarantees, in turn allowing investors to focus on inflation data and the movement of central banks.
Meanwhile, Bitcoin jumped 9% to $ 42,260 after U.S. President Joe Biden signed an executive mandate requiring government agencies to assess the benefits and risks of creating a central bank digital dollar.
