Global stock markets recovered on Thursday thanks to strong company earnings reports, while oil prices rose 5% to a two-week high following US sanctions against Russia.
The US decision to impose sanctions on Rosneft and Lukoil due to the Ukraine war increased expectations of a contraction in oil supply. This development pushed Brent oil above $66. At the same time, European indices closed the day in positive territory with positive earnings reports; The STOXX 600 index rose 0.3%. On the other hand, the MSCI global index fell 0.1%, while the Chinese stock market closed the day up 0.3% despite rumors of US technology export restrictions. The focus of investors is on potential interest rate cuts by the Federal Reserve (Fed). Markets expect the Fed to lower the interest rate from 4% to 3% by June. Experts say, “Don’t underestimate the appeal of interest rate cuts,” noting that this expectation is supporting the markets.
Also, the European Union approved the 19th sanctions package against Russia and banned the import of liquefied natural gas (LNG).
Gold price also finished the day up 0.5% at $4,114 per ounce.
