Global stock markets have risen on the news that Russia is withdrawing some of its troops from Ukraine’s border, raising optimism that military tensions would relax.
Italy and Germany’s stock exchanges both rose by almost 2%, while France’s CAC 40 gained 1.8 percent and London’s FTSE 100 gained 1%.
The three main US indices all ended the day with gains of more than 1%.
The gains come after a sell-off on Monday following the United States’ warning that Russia may attack Ukraine at any time.
The reported military withdrawals “would be wonderful,” US President Joe Biden said on Tuesday, although they had not been officially confirmed. A Russian assault, he said, is “still very much a possibility.”
The stock market in the United States fell during his words, only to recover. The Dow Jones Industrial Average rose 1.2 percent, while the S&P 500 climbed over 1.5 percent and the Nasdaq gained nearly 2.6 percent.
Concerns over the clash caused shares to plummet, prompting the market to rise.
On Monday, the FTSE 100 fell 1.7 percent, its lowest level in three weeks, driven by shares in travel businesses, which are among the companies most vulnerable if Western sanctions against Russia or a conflict result in higher gasoline costs.
Oil prices fell sharply on Tuesday, plunging more than 4% at one point.
Boeing, the world’s largest aircraft manufacturer, was one of the Dow’s top gainers, rising more than 3%. Expedia, United Airlines, and American Airlines were among the corporations that contributed to the S&P 500’s surge.
Despite recent data indicating worse-than-expected growth in producer prices, which might prompt the Federal Reserve to act more forcefully to battle inflation, the gains were made.
AstraZeneca led the market higher in London, jumping more than 5% after reporting excellent results from trials for a medicine in development, while mining company Evraz, which has operations in Russia, was also up more than 4%.
On Tuesday, German Chancellor Olaf Scholz and Russian President Vladimir Putin met to discuss the Nord Stream 2 gas pipeline, which has been finished but has yet to be licensed for use due to strong objections from the United States and certain European countries.
Mr Scholz said at a press briefing following the meeting that Germany was committed to ensuring that gas transportation runs smoothly “according to the agreements we have.”
He said, ” “We also want to guarantee that Europe develops peacefully and that there is no military conflict in Ukraine. If this is true, it will have far-reaching ramifications.”