Stock markets around the world experienced a rebound on Friday (25/2). Meanwhile, oil prices fell and the US dollar fell.
This is because investors welcome talk of new diplomacy after Russia's invasion of Ukraine and western sanctions did not touch Russia's energy sector.
The day before, oil prices rocketed past the level of US$ 100 per barrel for the first time since 2014 due to investor concerns about the Russian invasion.
Wall Street indexes extended the previous session's rally with the Nasdaq and S&P 500 posting gains for the week. The MSCI World Index closed up 2.43% so that in a week it only corrected 0.7%.
Russian President Vladimir Putin has urged Ukraine's military to overthrow its political leaders and negotiate peace. Authorities in Kyiv called on citizens to help defend the capital.
European Union countries agreed to freeze European assets belonging to Putin and his foreign minister, Sergei Lavrov. The White House announces plans for US sanctions.
Chinese Foreign Minister Wang Yi said China respects Ukraine's sovereignty and Russia's security issues, and welcomes direct Russia-Ukraine dialogue to take place as soon as possible.
Russia said it was ready to send a delegation for talks with Ukraine, but US State Department spokesman Ned Price called this an attempt to engage in diplomacy with arms.
"The market was progressing. They heard the word invasion on Wednesday night and started selling. Then the market heard the word sanctions on Thursday and started buying. Then they heard the word diplomacy on Friday and kept buying," said John Augustine, chief investment officer at Huntington National Bank. in Columbus quoted by Reuters, Monday (28/2).
Some investors remain wary of riskier assets ahead of the weeks before the Federal Reserve is expected to raise US interest rates.
"Market players who only look at the short term are saying that what they feared has happened so there's nothing to fear about an invasion of Ukraine. That's too shortsighted. The Fed's plans to raise interest rates should also be watched closely," said Chris Zaccarelli, chief investment officer at Independent Advisor Alliance Charlotte.
The Dow Jones Industrial Average ended up 2.51% after closing 0.28% higher on Thursday while the S&P 500 gained 2.24% after rising 1.5% the previous day and the Nasdaq Composite added 1.64% after rallying 3, 3% on Thursday.
Russia's main stock index closed up 20% after a record 33% drop on Thursday. Gains eased slightly in after-hours trading with the index holding up around 15%.
Brent crude settled at $97.93 a barrel, down 1.16%, while U.S. West Texas Intermediate crude was down 1.3% at $91.59.
Safe haven gold fell 0.8% to US $ 1,887.24 per ounce. On Thursday it jumped to $1,973.96, the highest since September 2020.
The yield on the 10-year US Treasury note fell 0.7 basis points to 1.965%. The yield on the two-year Treasury, which usually moves in line with interest rate expectations, rose 2.2 basis points to 1.568%.
The US dollar slumped a day after posting its biggest daily percentage gain in more than three months. Investors are betting sanctions on Russia and US inflation data may make the Fed cautious about raising interest rates too soon.
The dollar index was down 0.589%, with the euro up 0.73% to $1.1273. The Russian ruble rose to 83.54 per dollar, up from the previous session's record low of 89.986.
US economic data on Friday showed consumer spending increased more than expected in January even as price pressures mounted, with annual inflation hitting levels last seen four decades ago.
