European Stocks Rise After Ukraine and Oil Subside

August 18, 2014 Share Print 0

European stocks rallied and prices of top-rated bonds fell on Monday as investors breathed easier over the crisis in Ukraine, which had appeared to escalate dangerously on Friday.

The dollar held steady against a currency basket .DXY after falling broadly on Friday, when the government in Kiev said its artillery had hit a Russian armored column. Russia denied its forces had crossed into Ukraine.

Brent crude oil fell more than $1 a barrel to below $103, erasing a similar rise on Friday. Prices fell as Ukraine tension eased and supply increased from Libya, another trouble spot.

Wall Street looked set to open higher, with stock index futures ESc1 gaining in pre-market trade.

Still, tension remained high in Ukraine. Each side accused the other of hitting a refugee convoy of buses with rockets, killing people trapped inside.

Russian Foreign Minister Sergei Lavrov said no progress had been made towards a ceasefire in talks with his Ukrainian, German and French counterparts, but that all issues related to a Russian humanitarian convoy heading for Ukraine had been resolved.

“We saw some diplomatic efforts over the weekend and there has been no major escalation in the conflict, but it is much too early to extrapolate this for the rest of the week,” said Norbert Wuthe, rate strategist at Bayerische Landesbank.

via Reuters

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Alfonso Esparza

Senior Currency Analyst at Market Pulse

Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.