Shares mixed after Putin sees ‘positive changes’ in talks with Ukraine

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The New York Stock Exchange (NYSE) in New York, where markets crashed after Russia continues to attack Ukraine, in New York, U.S., February 24, 2022. REUTERS/Caitlin Ochs

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NEW YORK, March 11 (Reuters) – Wall Street and European stocks were mixed as gold fell on Friday after Russian President Vladimir Putin said talks between Moscow and Ukraine had made progress.

Putin did not provide any details and recent talks between the two countries have made little progress. Read more

US President Joe Biden said on Friday that the United States would revoke Russia’s “permanent normal trade relations” status, a change that Biden said would pave the way for the United States to impose tariffs on a large range of Russian products. Read more

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The war in Ukraine, now in its third week, and the prospect of central bank monetary policy tightening to rein in inflation just as the global economy begins to slow have sent financial markets swaying. up and – mainly – down.

Thursday’s data showed US inflation hit a four-decade high, prompting traders to up their bets on Federal Reserve interest rate hikes from next week and triggering a sell-off during from the previous trading session.

The Bank of England is expected to tighten next week, especially after January’s economic growth figures turned stronger than expected on Friday. A more hawkish-than-expected European Central Bank this week has added to the sentiment that policymakers will not be deterred by uncertainty over the war in Ukraine and will tighten.

But after another killer week and with commodity prices down from recent highs, traders looked for reasons to buy into riskier assets, including stocks.

“Overall, central banks now have less flexibility to cushion shocks in equity markets, as they have managed to do in recent years,” said Mark Haefele, chief investment officer, global wealth management, at UBS.

But he said simply selling the stocks was not advised.

“Our view remains that simply selling risky assets is not the best response to the war in Ukraine,” he said, advising investors to reduce their equity exposure.

As of 10:45 a.m. EST (1545 GMT), the Dow Jones Industrial Average (.DJI) rose 174.28 points, or 0.53%, the S&P 500 (.SPX) gained 3.99 points, or 0.09%, and the Nasdaq Composite (.IXIC) fell 51.72 points, or 0.39%, to 13,078.24.

The pan-European STOXX 600 index (.STOXX) rose 1.22% and the MSCI gauge of stocks across the world (.MIWD00000PUS) lost 0.23%.

Emerging market stocks lost 1.40%. MSCI’s broadest index of Asia-Pacific stocks outside Japan (.MIAPJ0000PUS) closed down 1.56%, while Japan’s Nikkei (.N225) lost 2.05%.

Spot gold fell 1.0% to $1,975.40 an ounce, after hitting $2,070 on Tuesday.

MSCI World Index

EURO FALLS

The ECB’s more hawkish tone had failed to substantially revive the single currency’s momentum as investors continued to worry about the impact of the war in Ukraine on the eurozone economy.

The euro was last down 0.31% at $1.0949.

“Any other day – that is pre-war – EUR/USD could have enjoyed lasting gains on the ECB’s hawkish policy,” said Chris Turner, global head of markets at ING.

“Yet it seems unlikely that barely equivalent ECB (Fed) tightening could generate a stronger euro in the face of heavy terms-of-trade losses.”

The yen weakened 0.69% against the greenback to 116.92 to the dollar, a low in more than five years.

The dollar index (.DXY) last rose 0.435% to 98.762, below an over-year-and-a-half high of 99.418 hit on Monday.

In commodity markets, oil prices rose but were far from the multi-year highs reached earlier in the week. U.S. crude recently rose 2.4% to $108.56 a barrel and Brent to $111.49, up 1.98% on the day.

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Additional reporting by Joice Alves in London; Editing by Chizu Nomiyama, Catherine Evans and Jonathan Oatis

Our standards: The Thomson Reuters Trust Principles.

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