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Hopes for a ceasefire in Ukraine give stock markets a boost
STORY: More investors are returning to European stock markets in hopes of an end to the fighting in Ukraine. The Dax rose on Monday by 2.6 percent to 13,977 points, the leading German index received additional tailwind from encouraging company balance sheets. However, analyst Robert Halver from Baader Bank remains cautiously optimistic. “The Frankfurt Stock Exchange is off to a very positive start today. There are talks again between Ukraine and Russia, but also between the USA and China. China is a bit of the gray eminence in the background. On the one hand, of course, one hopes that China will do something for the global economy does, on the other hand appeases the Russians. Let’s see if the hope is really justified.” However, online brokers Markets warned that the current price recovery could turn out to be a flash in the pan. Although Russia is again negotiating a ceasefire, it continues to shell Ukrainian cities. At the same time, the country is threatening to repay its foreign exchange debt in rubles, which would mean a default. On the commodity markets, speculation about the failure of Russian supplies subsided.
Encouraging company balance sheets are also providing momentum. But the nervousness with regard to Russia remains.