Global markets rebounded sharply on Thursday, buoyed by growing hopes of a resolution to the conflict in Ukraine, while reacting to contrasting results from companies in the luxury goods sector.
Hopes for peace in Ukraine underpin market recovery
A prolonged and reportedly productive conversation between Donald Trump and Vladimir Putin boosted hopes for peace. According to Trump, Putin was open to a “long-term solution” to the war in Ukraine, and raised the possibility of direct talks. These talks have rekindled hopes of an end to hostilities in the near future.
Thus, optimism about a possible end to the conflict in Ukraine and Russia had an immediate effect on global stock markets : US and European equity futures showed signs of recovery, with the EUROSTOXX 50 up 1%, the Nasdaq up 0.4% and the S&P 500 up 0.2%. In Asia, indices also advanced, with Japan’s Nikkei up 1.4%.
A key aspect of this optimism also lies in the prospect of a lifting of international sanctions against Russia, particularly those affecting the oil sector, as Russia is one of the world’s largest oil producers. If a ceasefire were to be signed, this could allow a return to normality in oil trading, leading to a drop in energy prices. This is exactly what the markets have seen this week, with oil prices falling by over 2% on Wednesday, and by around 1% on Thursday. This put pressure on energy company shares, but on the other hand fuelled investor optimism about a return to global economic growth, supported by an easing of geopolitical tensions.
To continue reading this article, subscribe or log in to your account
Discover our plans
- Every day, keep up to date with the latest business news from the world of luxury.
- Receive the essential luxury business news by email every week
- Access all our events
- The Luxury Journals and Luxus Magazine in print and digital versions
Subscribe for 1€
Become an active member of the community of luxury leaders.
Read also > [STOCK MARKET UPDATE] Financial results and tariffs at the heart of concerns
Featured photo : © Getty Images
