Budapest Post

Cum Deo pro Patria et Libertate
Budapest, Europe and world news

Gold, oil rise on Ukraine crisis; U.S. stocks end flat

Gold, oil rise on Ukraine crisis; U.S. stocks end flat

Oil and gold rose on Wednesday after NATO and the United States said Russia was increasing its troop build-up near Ukraine, while a dovish reading of minutes from the last Federal Reserve meeting helped stocks close mostly flat on Wall Street.

Stronger-than-expected U.S. retail sales data and higher inflation readings from Canada and Britain added to the outlook for tighter monetary policy worldwide, but geopolitical tensions kept markets for the most part focused on the Ukraine standoff.

Fed policymakers agreed it was time to raise interest rates but that any decision would depend on an analysis of inflation and other data each time they met, minutes from their two-day meeting in late January showed.

"The reading of the Fed minutes is less hawkish, less aggressive rate hikes, at least initially," said Tim Ghriskey, senior portfolio strategist at Ingalls & Snyder.

"The minutes are little bit more dovish than we heard (Fed Chair Jerome) Powell talk in the post Fed meeting press conference in January," Ghriskey added.

On Wall Street, the Dow Jones Industrial Average (.DJI) fell 0.16%, the S&P 500 (.SPX) gained 0.09% and the Nasdaq Composite (.IXIC) dropped 0.11%. All 11 sectors of the S&P early in the session were higher, with the exception of the energy index (.SPNY), but stocks pared losses after the Fed minutes came out.

MSCI's gauge of stocks across the globe (.MIWD00000PUS) reversed course to post a 0.32% gain, while its emerging markets index (.MSCIEF) rose 1.23%.

Sharp gains earlier in Asian equity markets on Tuesday's news that Russia was withdrawing some troops faded in the European session, with the STOXX 600 pan-European index (.STOXX) ceding some early gains to close barely up 0.04%.

NATO questioned Moscow's stated willingness to negotiate a solution to the crisis, one of the deepest in East-West relations in decades, and accused Russia of increasing its massive military build-up surrounding Ukraine.

U.S. Secretary of State Antony Blinken backed the assessment, an outlook that lifted the price of safe-haven gold and boosted crude oil along with related assets as supply would be further constrained by an invasion.

"There are not really any signs of de-escalation. That's going to put commodities likely on firmer footing given that extent supply and inventories are really low," said Bipan Rai, North America head of FX strategy at CIBC Capital Markets.

U.S. crude futures rose $1.59 to settle at $93.66 a barrel, while Brent settled up $1.53 at $94.81.

The Russian ruble gained 0.64% to 75.12 per dollar as fears of immediate military action waned, for the moment.

Earlier, U.S. retail sales rebounded sharply in January amid a surge in purchases of motor vehicles and other goods, but higher prices could blunt the impact on economic growth this quarter. L1N2UR17V

Data showed retail sales rose 3.8% last month, almost double the consensus forecast by economists of a 2.0% gain.

Spot gold , which on Tuesday hit the highest level since June 2021 at around $1,879 per ounce, added 0.8% to $1,867.51.

U.S. gold futures settled down 0.8% at $1,871.50.

Inflation was still a market concern as data in Britain showed consumer prices increased at the fastest annual pace in nearly 30 years, reinforcing chances that the Bank of England will raise rates for a third meeting in a row.

Canada's annual inflation rate accelerated again in January to hit a fresh 30-year high of 5.1%, bolstering the case for a steady series of interest rate hikes.

U.S. Treasury and euro zone government bond yields extended their decline. The yield on 10-year Treasury notes was down 0.5 basis points to 2.040%.

The two-year U.S. Treasury yield, which typically moves in step with interest rate expectations, fell 3.4 basis points to 1.535%. Earlier it touched a low of 1.496%.

The dollar index fell 0.215%, with the euro up 0.18% to $1.1376.


3-Month, 10-Year curve
AI Disclaimer: An advanced artificial intelligence (AI) system generated the content of this page on its own. This innovative technology conducts extensive research from a variety of reliable sources, performs rigorous fact-checking and verification, cleans up and balances biased or manipulated content, and presents a minimal factual summary that is just enough yet essential for you to function as an informed and educated citizen. Please keep in mind, however, that this system is an evolving technology, and as a result, the article may contain accidental inaccuracies or errors. We urge you to help us improve our site by reporting any inaccuracies you find using the "Contact Us" link at the bottom of this page. Your helpful feedback helps us improve our system and deliver more precise content. When you find an article of interest here, please look for the full and extensive coverage of this topic in traditional news sources, as they are written by professional journalists that we try to support, not replace. We appreciate your understanding and assistance.
Newsletter

Related Articles

0:00
0:00
Close
Altman Says GPT-5 Already Outpaces Him, Warns AI Could Automate 40% of Work
Russian Research Vessel 'Yantar' Tracked Mapping Europe’s Subsea Cables, Raising Security Alarms
Global Cruise Industry Posts Dramatic Comeback with 34.6 Million Passengers in 2024
U.S. Demands Brussels Scrutinize Digital Rules to Prevent Bias Against American Tech
Private Equity’s Fundraising Surge Triggers Concern of European Market Shake-Out
Tokyo’s Jimbōchō Named World’s Coolest Neighbourhood for 2025
European Officials Fear Trump May Shift Blame for Ukraine War onto EU
The Personality Rights Challenge in India’s AI Era
Italy Considers Freezing Retirement Age at 67 to Avert Scheduled Hike
Italian City to Impose Tax on Visiting Dogs Starting in 2026
Study Finds No Safe Level of Alcohol for Dementia Risk
Trump Says Ukraine Can Fully Restore Borders with NATO Backing
Europe Signals Stronger Support for Taiwan at Major Taipei Defence Show
Germany Weighs Excluding France from Key European Fighter Jet Programme
Cyberattack Disrupts Check-in and Boarding Systems at Major European Airports
Björn Borg Breaks Silence: Memoir Reveals Addiction, Shame and Cancer Battle
When Extremism Hijacks Idealism: How the Baader-Meinhof Gang Emerged and Fell
JWST Data Brings TRAPPIST-1e Closer to Earth-Like Habitability
Trump Orders $100,000 Fee on H-1B Visas and Launches ‘Gold Card’ Immigration Pathway
France’s Looming Budget Crisis and Political Fracture Raise Fears of Becoming Europe’s “Sick Man”
Three Russian MiG-31 Jets Breach Estonian Airspace in ‘Unprecedentedly Brazen’ NATO Incident
European manufacturers against ban on polluting cars: "The industry may collapse"
Turkish car manufacturer Togg Enters German Market with 5-Star Electric Sedan and SUV to Challenge European EV Brands
Christian Brueckner Released from German Prison after Serving Unrelated Sentence
World’s Longest Direct Flight China Eastern to Launch 29-Hour Shanghai–Buenos Aires Direct Flight via Auckland in December
New OpenAI Study Finds Majority of ChatGPT Use Is Personal, Not Professional
The conservative right spreads westward: a huge achievement for 'Alternative for Germany' in local elections
Pope Leo Warns of Societal Crisis Over Mega-CEO Pay, Citing Tesla’s Proposed Trillion-Dollar Package
Poland Green-Lights NATO Deployment in Response to Major Russian Drone Incursion
U.S. and China Agree on Framework to Shift TikTok to American Ownership
Le Pen Tightens the Pressure on Macron as France Edges Toward Political Breakdown
Czech Republic signs €1.34 billion contract for Leopard 2A8 main battle tanks with delivery from 2028
Penske Media Sues Google Over “AI Overviews,” Claiming It Uses Journalism Without Consent and Destroys Traffic
Indian Student Engineers Propose “Project REBIRTH” to Protect Aircraft from Crashes Using AI, Airbags and Smart Materials
One in Three Europeans Now Uses TikTok, According to the Chinese Tech Giant
Could AI Nursing Robots Help Healthcare Staffing Shortages?
NATO Deploys ‘Eastern Sentry’ After Russian Drones Violate Polish Airspace
The New Life of Novak Djokovic
German police raid AfD lawmaker’s offices in inquiry over Chinese payments
Volkswagen launches aggressive strategy to fend off Chinese challenge in Europe’s EV market
France Erupts in Mass ‘Block Everything’ Protests on New PM’s First Day
Poland Shoots Down Russian Drones in Airspace Violation During Ukraine Attack
Apple Introduces Ultra-Thin iPhone Air, Enhanced 17 Series and New Health-Focused Wearables
Macron Appoints Sébastien Lecornu as Prime Minister Amid Budget Crisis and Political Turmoil
Vatican hosts first Catholic LGBTQ pilgrimage
Apple Unveils iPhone 17 Series, iPhone Air, Apple Watch 11 and More at 'Awe Dropping' Event
France joins Eurozone’s ‘periphery’ as turmoil deepens, say investors
France Faces New Political Crisis, again, as Prime Minister Bayrou Pushed Out
Nayib Bukele Points Out Belgian Hypocrisy as Brussels Considers Sending Army into the Streets
France, at an Impasse, Heads Toward Another Government Collapse
×