FTSE 100 rises after Zelensky says Ukraine not pressing on Nato membership anymore

Yesterday was very volatile on global markets, between embargos on Russia energy goods, massive spending plans in the EU and the ongoing invasion of Ukraine. The FTSE 100 edged up 0.1%. Brent oil reached $132 a barrel and nickel prices surged 66 %. The energy sector performed best, followed by defensives.

US President Joe Biden announced a ban on imported oil and other energy sources from Russia, which pushed US gasoline prices to record levels.

EU leaders are meeting today in Versailles to decide on funding the bloc’s economic response to the Ukraine crisis, including a rapid reduction in its reliance on Russian energy. On Tuesday, the EU unveiled a plan to cut Russian gas imports by two-thirds within a year, including by importing more liquefied natural gas, boosting renewable energies and cutting demand via efficiency measures.

The FTSE 100 rose 2% this morning, as investors welcomed President Volodymyr Zelensky’s words of appeasement. He said he is no longer pressing for NATO membership for Ukraine.

Prudential is among the biggest gainers after posting upbeat earnings. Unilever also rose after the food company suspended imports and exports out of Russia.

 

Things to read today:

Macron's summit seeks fast-track sovereign Europe (Financial Times)

Russian Oil Embargo Pushes OPEC to Take Sides (WSJ)

Europe is on a war-time mission to end its addiction to Russian Energy (Bloomberg)