Stocks rose on Tuesday, as falling oil prices and ceasefire talks between Russia and Ukraine fueled bullish sentiments in the market.
US equities futures advanced after USD rose for a third straight session on Monday.
It is the third straight week of uninterrupted growth for the US stock market.
Oil prices declined amid worries that Chinese mobility restrictions against the new COVID-19 outbreak could decrease demand.
The yield of US government bonds increased, with bets on aggressive US monetary tightening hurting shorter maturity Treasuries. Inversions along the curve, where some short-term rates exceed longer tenor yields, point to concerns about a looming economic downturn as the Federal Reserve hikes interest rates to quell high inflation.
Global shares rose by about 8% from the lows reached after the beginning of the war between Russia and Ukraine. Such resilience contrasts with falling bonds and inverting yield curves, which are shaking economic confidence. Investors are trying to parse developments in the war, increased commodity prices, and the Fed's fight against price pressure.
Today, Germany's consumer climate data were released. The index declined to the lowest level over the past year. Market players are now focusing on eurozone's inflation data, which are set to be released this week. Economists expect CPI to reach an all-time high in March.
Overall, the European stock market is following the trends of its American counterpart.
Signs of strategic splits are emerging within NATO ranks. The US is preparing to tighten sanctions against Russia, singling out sectors essential for Russian military efforts. Russia made a $102 million interest payment as it continues to service its foreign bonds, despite being isolated from the global financial markets.
Here are some key events this week:
- Tuesday: speech by Patrick Harker, the President of the Fed Reserve Bank of Philadelphia
- Wednesday: US GDP data
- Wednesday: speech by Thomas Barkin, the President of Fed Reserve Bank of Richmond
- Thursday: China manufacturing, non-manufacturing PMIs
- Thursday: OPEC and non-OPEC ministerial meeting to discuss production targets
- Thursday: speech by John Williams, the President of Fed Reserve Bank of New York
- Friday: US jobs report
