Several equities have reacted sharply to suggesting that Russia is de-escalating its presence on the Russia/Ukraine border.
As reported by Reuters, Russia has begun to move an undisclosed number of its troops away from the Ukrainian border after completing mock defense exercises. Even so, tensions have not entirely dissipated. NATO, US, and UK officials remain cautious of the situation, with Boris Johnson noting,
"The intelligence that we're seeing today is still not encouraging".
The markets have been more eager to embrace talk of de-escalation. European Equities spent Tuesday rebounding sharply. The STOXX 600, which is comprised of 600 stocks across 17 European exchanges, broke a three-day losing streak and rose 1.43%.
On an individual bourse level, the Italian stock market Index, the FTSE MIB, led the way back into positive territory, up 2.17% over the trading day. The German DAX and French CAC40 indices followed closely, each climbing ~1.9%, and the UK's FTSE 100 climbed up 0.98%.
US stocks reacted similarly when they opened a few hours after Europe. The US market has recently closed where the NASDAQ rose 2.24%, the S&P 500 rose 1.36%, and the Dow Jones Industrial Average rose 1.06%.
Commodities also make significant moves on news that Russia is de-escalating. Naturally, commodities would be significantly affected by a war between Russia and Ukraine and NATO affiliated nations that have reacted the sharpest.
WTI and Brent have pulled back a shocking 3.7% and 3.4%, respectively. On Monday, Brent oil prices were pushing their way up to $100 per barrel after crossing $95 per barrel. Before the turnaround in the oil price, talk of $10 per barrel was beginning to filter into market predictions.
Russia and Ukraine are two of the largest exporters of wheat. As such, supply concerns for the soft commodity have eased slightly, and with it, the price has pulled back from its two-week high. Wheat is now trading down 2.63% to $ 7.8 per bushel. Low supplies could temper more downside for Wheat in Canada and the US.
Other major exports of the region are trading down on the easing tensions. Corn, Iron Ore, and Soybean are all trading down 2.86%, 1.37%, and 1.27%, respectively.