Stock Futures Print Gains as US and Russian Presidents Agrees to Summit on Ukraine

UTC by Benjamin Godfrey · 3 min read
Stock Futures Print Gains as US and Russian Presidents Agrees to Summit on Ukraine
Photo: President Joe Biden / Facebook

Besides the growth notably recorded in the stock futures, the Dollar also became firmer against other currencies around the world.

The world received a well-expected shocker, and the stock futures responded positively when the news about the “in-principle” agreement between United States President Joe Biden and his Russian counterpart, Vladimir Putin to hold a summit over the latter’s standoff with Ukraine. As reported by Reuters, the agreement requires Russia to call off any form of invasion planned against Ukraine for the foreseeable future.

Based on this glimmer of hope, US stock futures got rejuvenated with the S&P 500 Futures rising 0.4% to pare off earlier losses. The Nasdaq Futures rose from a 1% loss to a 0.2% growth. The uptrend, despite the American markets being shut down for a holiday, has trickled to other global markets with the EUROSTOXX 50 futures turning 0.3% higher, and FTSE futures swinging back to flat.

The Japanese Nikkei 225 ended up at a loss of 0.8%, the loss figure was actually a big improvement from earlier records. The Shenzhen SZSE Component Index (SHE: 399001) inked 0.085% to 13,471.16.

Beyond the Russian-Ukrainian conflict, the prospect of the US Federal Reserve tightening the economy amidst a massive rise in inflation is also putting investors on edge. The core inflationary gauge used by the Feds to measure economic progress is due out this week, and it is expected to ink a growth of 5.1%, the highest recorded on an annualized basis since the early 1980s.

“January inflation readings have surprised materially to the upside,” noted JPMorgan chief economist Bruce Kasman. “We now look for the Fed to hike 25bp (basis points) at each of the next nine meetings, with the policy rate approaching a neutral stance by early next year.”

Per the Reuters report, at least 6 of the US Federal Reserve policymakers are on track to make comments about the economy this week, and their position is expected to have an unprecedented twist to how the market reacts.

Stock Futures Growth and the Firmer Dollar Performance

Besides the growth notably recorded in the stock futures, the Dollar also became firmer against other currencies around the world. While the Euro also stands strong and pegged at $1.1361 against the dollar, its stability is largely fragile for now and can easily be offset should Russian troops eventually march into Ukraine.

Oil prices remain one of the major essential commodities that have responded to the news of the Russian and US summit. While the West Texas Intermediate (WTI) added 13 cents atop a 0.14% upsurge to $91.20, Brent crude added 4 cents to be trading at $93.66 per barrel.  The observable growth in the global oil price was backed by the  Ministers from Arab oil-producing countries’ rejection of the call by OPEC+ to add more than the planned 400,000 barrels per day addition.

While the global economy is still at a tipping point, many are enthusiastic something good may come out of the scheduled summit for Ukraine.

Business News, Currencies, Indices, Market News, News
Benjamin Godfrey

Benjamin Godfrey is a blockchain enthusiast and journalists who relish writing about the real life applications of blockchain technology and innovations to drive general acceptance and worldwide integration of the emerging technology. His desires to educate people about cryptocurrencies inspires his contributions to renowned blockchain based media and sites. Benjamin Godfrey is a lover of sports and agriculture.

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