LONDON (Reuters) - Prospects of peace talks between Russia and Ukraine, Chinese stimulus and an imminent U.S. interest rate rise lifted stocks and U.S. Treasury yields on Wednesday.
(Reuters) - Gold steadied on Wednesday, with a weaker dollar offsetting pressure from higher U.S. Treasury yields as investors await the first pandemic-era U.S. Federal Reserve interest rate hike.
Bullion has eased after rallying to within $5 of a record last week as Russia's invasion of Ukraine caused commodities to surge, threatening a combination of low growth and high inflation
The US Federal Reserve is widely expected to start raising interest rates from near zero this week amid skyrocketing inflation, which has been rising to the highest level in 4 decades, economists said
Selling accelerated after Russia attacked Ukraine in February and caused a spike in global commodity prices
Energy shares slip as Brent falls below $110; all eyes on Fed policy meeting
Analysts attributed the revival of risk appetite to the fact that Russian and Ukrainian negotiators hinted at progress in peace talks
Stabilising crude oil prices and BJP's impressive show in state polls boosted the morale on the streets. This week investors will track the two-day Fed meeting against the backdrop of US inflation
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The Russia-Ukraine issue, the US Fed interest rate decision and release of domestic inflation data are some of the major factors that will drive the stock markets, analysts said.
Global share markets slid on Thursday as U.S. inflation hit almost 8%, making it almost certain the U.S. Federal Reserve will raise interest rates next week
Nomura pointed out that even though the outlook for banks remains positive, a prolonged conflict-like situation would be negative for global growth
Brent crude of $120 a barrel, Credit Suisse estimates, could add $60 billion to India's import bill. Price rises for gas, coal, edible oils and fertilisers could add another $35 billion.
Russia's attack has whiplashed financial markets and sent energy and commodity prices surging, with West Texas Intermediate crude hovering around $110 a barrel.
The Budget and RBI's last policy took a conservative estimate of crude prices $75 per barrel. This is likely to be a challenge going forward, economists say
Powell called the Russian invasion of Ukraine 'a game changer' that could have unpredictable consequences
Brent crude oil prices touched an intra-day high of $121.89 per barrel, the highest since April 2012, before paring some gains
US Federal Reserve and some of its major central banking peers will press ahead with lifting interest rates in March, money markets suggest, even as Ukraine war complicates picture of inflation
As long as the Russia-Ukraine heat continues, commodities will be the dominating theme versus the consumption theme said B Gopkumar, MD and CEO at Axis Securities.
An inflation gauge that is closely monitored by the Federal Reserve jumped 6.1% in January compared with a year ago, the latest evidence that Americans are enduring sharp price increases