Headlines:

Markets:

  • AUD leads, JPY lags on the day
  • European equities higher; S&P 500 futures up 1.6%
  • US 10-year yields up 3.5 bps to 1.906%
  • Gold down 1.6% to $2,018
  • WTI down 3.0% to $119.96
  • Bitcoin up 8.7% to $41,830

A day of ceasefire in the Russia-Ukraine war and markets are taking to that with an optimistic tone.

Equities are rebounding strongly with European indices posting solid gains on the day so far. The DAX is up 4.9% and CAC 40 up 4.6%. Meanwhile, US futures also extended gains and are up 1.6% currently.

This comes after a run of losses for stocks so it is a welcome reprieve but we'll see if it can last.

The more positive mood spilled over to bonds with yields tracking higher and 10-year Treasury yields moving back above 1.90%.

In FX, the aussie and kiwi are having a solid day alongside the euro as the mood music improves. EUR/USD is up 0.7% to 1.0980 with the high earlier hitting 1.0992. AUD/USD tracked higher from 0.7280 to 0.7330 while NZD/USD moved up from 0.6810 to 0.6850 on the session.

The yen is the laggard as USD/JPY inched higher to close in on 116.00.

Elsewhere, gold slumped as a result in a shove lower from $2,030 levels to a low of $2,004 with oil also retreating as well with WTI crude falling back below $120.

As much as there is a sense of optimism today, it remains to be seen if we can see that last as headline risks continue to be a key risk factor for markets in the days ahead.