(Bloomberg) — Stocks rose Tuesday on optimism that geopolitical risks are receding.
Europe’s Stoxx 600 Index and U.S. futures rose after reports that Russia is returning some troops. MSCI Inc.’s Asia-Pacific share gauge fell, though China bucked the trend on central bank steps to support economic growth.
Treasury yields advanced, while the dollar slipped.
The tension in Europe is still keeping oil markets on edge. West Texas Intermediate crude fell, but remained around $95 a barrel after earlier scaling that mark for the first time since 2014.
Iron ore tumbled as Beijing ramped up a campaign to stop prices overheating even before the government rolls out demand-boosting stimulus measures this year.
Among individual stock moves, Glencore Plc rose after saying it expects long-running corruption probes by U.S. and U.K. authorities to be resolved this year and as the world’s biggest commodity trader reported its highest-ever profit and almost $4 billion in shareholder returns.
Diplomatic efforts are continuing to defuse the Ukraine situation, with German Chancellor Olaf Scholz set to meet Russian President Vladimir Putin on Tuesday. While U.S. officials have warned a Russian invasion may be imminent, Moscow has repeatedly denied that one is planned. The crisis adds to market concerns over high inflation and the withdrawal of Fed stimulus.
“What we are seeing is a Fed that is reacting to inflationary prints even though many of the pressures on inflation are factors that the Fed really can’t solve,” Kristina Hooper, chief global market strategist at Invesco, said on Bloomberg Television. “So that certainly increases the risks and reduces the clarity.”
Fed officials came out with another round of views on the policy outlook. Fed Bank of St. Louis President James Bullard said the monetary authority needs to move forward its plans to raise rates to underline its inflation-fighting credibility.
Fed Bank of Kansas City President Esther George said the central bank should take a systematic approach to removing policy accommodation but be careful to not “oversteer.”
Here are some key events this week:
U.S. PPI, Tuesday
EIA crude oil inventory report, Wednesday
FOMC minutes, Wednesday
China CPI, PPI, Wednesday
G-20 finance ministers, central bank governors meet, Thursday through Feb. 18
Cleveland Fed President Loretta Mester, St. Louis Fed President James Bullard speak, Thursday
U.S. Monetary Policy Forum: speakers including Fed officials Charles Evans, Christopher Waller and Lael Brainard, Friday
Some of the main moves in markets:
Stocks
The Stoxx Europe 600 rose 0.6% as of 8:14 a.m. London time
Futures on the S&P 500 rose 0.4%
Futures on the Nasdaq 100 rose 0.7%
Futures on the Dow Jones Industrial Average rose 0.2%
The MSCI Asia Pacific Index fell 1.5%
The MSCI Emerging Markets Index fell 1.6%
Currencies
The Bloomberg Dollar Spot Index fell 0.2%
The euro rose 0.3% to $1.1336
The Japanese yen was little changed at 115.56 per dollar
The offshore yuan rose 0.1% to 6.3511 per dollar
The British pound rose 0.2% to $1.3554
Bonds
The yield on 10-year Treasuries advanced two basis points to 2.01%
Germany’s 10-year yield was little changed at 0.28%
Britain’s 10-year yield was little changed at 1.59%
Commodities
Brent crude fell 0.9% to $95.65 a barrel
Spot gold was little changed
