On Wall Street, the S&P 500 benchmark and the Nasdaq Composite technology heavy index rose to more than two months high, closing at 1.2% and 1.8% respectively. Both are still declining this year. The rally in US stocks came as Russia announced it had decided to “dramatically” curtail military activity in the Kiev and Chernihiv regions after envoys from Moscow and Ukraine met in Istanbul on Tuesday to discuss a possible peace deal. Brent crude, the international benchmark for crude oil, fell 2% to $ 110.23 a barrel, having risen close to $ 140 in early March. As Wall Street rallied, the US Treasury market signaled that investors were worried that the Federal Reserve’s tighter monetary policy could dramatically slow economic growth. The yield on two-year government bonds briefly rose above the yield on 10-year bonds for the first time since August 2019, a move closely monitored by policymakers and investors as a potential indicator of recession. At the end of Tuesday’s meeting in New York, the performance of the 10-year Treasury Department had fallen 0.07 percentage points to 2.39%, while the two-year performance was approximately stable at 2.36%. Bank of America analysts wrote on Monday that the recent stock market rally “defies the fundamentals” and is unlikely to last, with interest rates “reflecting more accurately [the] gloomier picture “. Guilhem Savry, Unigestion’s cross-asset manager, said stock markets were boosted by short-term hedging fund strategies following trends, but said “this could be reversed quickly.” “We are in a short-term positive cycle that will change as soon as there is a negative geopolitical event or negative economic growth data,” he added. In Europe, the Stoxx 600 stock index rose 1.7%, reaching its highest level since closing on February 17, before Russia began its full invasion of Ukraine.

The auto industry was a bright spot, with shares of the Stoxx 600 auto-brand rising nearly 6% as investors believed they were mitigating hostilities that mitigated supply chain disruptions. The Stoxx index of European banks also rose 3.8% to be positive for the month in hopes that the end of the conflict will boost the economic outlook for the eurozone. “Investors can not know much about wars other than that they end at some point and the titles they seem to be bringing forward this day are obviously very good for market psychology,” said Chris Jeffery, head of interest rate and inflation strategy. in Legal & General Investment Management. . The euro rose 0.9% against the dollar to $ 1.11. Germany’s two-year bond yield jumped just above zero for the first time since 2014 as the price of debt fell, reflecting bets on a peace deal that strengthens the European Central Bank’s determination to tighten monetary policy.

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