European equity markets rebounded strongly today as risk appetite increased after tensions between Ukraine and Russia eased following President Putin’s announcement ordering troops engaged in exercises this week to return back to base.
It was a relief rally for the European equities and the DAX, CAC, IBEX and London equity benchmark indices surged between 1.7% and 2.5%. In the US, equity markets have also rebounded with the Dow Jones index gaining almost 200 points +1.22%, at the time of writing, while the S&P 500 index is also higher by 1.36%.
In London, strong earnings results from the equipment hire company Ashtead helped the index to climb higher, surging by 12.53%. Glencore also rose by 1.7% after its earnings results beat expectations.
On the macroeconomic front, Eurozone’s producer prices fell by 0.3% in January versus Thomson Reuters’ poll of a small 0.1% decline. In the US, the IBD economic optimism increased to 45.1 in March, compared to 44.9 in February, fairly in-line with analysts’ expectations.
We have seen a strong recovery across the global equity markets today. However, until there is a clear resolution to the Ukrainian political issue, we expect fairly nervous trading conditions across the markets as investors would like to remain cautious.