New York, Sep 10 : Ukrainian forces have made huge progress in September in their battle against Russia which has eased some investor worries of the ongoing war-induced energy crises in Europe according to according to the news media.European markets ended the day higher and so did the markets in the Asia-Pacific region.
The Dow has risen over 200 points in the US and the major indexes were on course to close out a three-week slide according to CNN reported.
Equity prices tends to rise when there is the news of Ukrainian growth or improvements on the ground, said Joseph Brusuelas, chief economist at RSM US, CNN reported.
Ukrainian President Volodymyr Zelensky said on Friday that the military of Ukraine has retaken over 1,000 sq.kilometers of territory since the start of the month and they continue to push for more in the Kharkiv and Kherson regions.
In the last three days Ukrainian troops have hoisted the flag of their nation in the Kharkiv settlement of Shevchenkove the major Russian logistics hub within Ukraine.
“If you plot the three days in relation to the course of the market as stated by Quincy Krosby, chief global strategist at LPL Financial, it’s clear that this is a significant factor in the equity gains.”This is a good thing even at a margin,” she added, CNN reported.
The conflict in Ukraine is cited as a cause in around 250 S&P Global credit rating downgrades or outlook cuts since it started in the middle of February.
The rise in the cost of energy and interest rates across the globe will cause the effects to be felt across the globe.
“This absence of energy is expected to severely impact the economy of the European Union this winter.
Europe in recession will impact US trade,” said Anthony Denier the chief executive officer of Webull.
“But should Ukraine continues to record victories the gas issue could be resolved and everyone would be satisfied.Therefore, people are buying stocks today.”
The Russian incursion of Ukraine has reduced global growth and pushed up the cost of living due to massive disruptions to energy supply — Russia is responsible for more than 10 percent of the world’s natural gas and oil production.The supply of grains is also disrupted, leading to a sharp rise in prices for commodities.
A shock to the price of energy and a central bank policy shift to fight the rise in inflation in Europe have further slowed the investor mood.
The possibility of recession is now certain in Europe as the cost of gasoline continue to rise through winter months, CNN reported.
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