US open: Stocks rise on hopes of Russia, Ukraine diplomacy

US futures

Dow futures 1.6% at 33137

S&P futures +1.8% at 4241

Nasdaq futures +2.1% at 13550

In Europe

FTSE +1.7% at 7088

Dax 5% at 13500

Euro Stoxx +0.1% at 3515

Learn more about trading indices

Futures rise despite volatile oil prices

US stocks are set for a stronger start, following Europe higher amid tentative signs of diplomacy over Ukraine. Oil prices remain volatile.

The tone from both Russia and Ukraine has softened on Wednesday, with Ukraine no longer insisting on joining NATO, one of the principal reasons that Russia invaded. This was followed by Russia saying that they don’t want to overthrow the current government. These comments are building optimism towards the third round of peace talks which are set to begin in Turkey tomorrow. A ceasefire is being observed today to allow civilians to leave Ukraine cities unharmed.

The market has grabbed onto the slight improvement in the situation, which is boosting hopes of a diplomatic solution. There is a good chance that the market is premature in its rebound, but after so many days in the red, bargain hunters are feeling brave enough to pick up stocks.

Despite the rise in stocks, oil remains extremely volatile after the US banned Russian oil imports but the IEA said that they could release more oil stocks.

Looking ahead the economic calendar is relatively quiet, with just JOLTS job openings which are expected to show around 11 million vacancies.

Where next for the Nasdaq?

The Nasdaq trades within a descending channel dating back to the start of the year, as the price formed a series of lower highs and lower lows. The price found support yesterday at 13100 which is now considered the immediate support level. The RSI is pointing higher but remains in bearish territory suggesting there is more downside to come. Sellers will need to take out 13100 in order to head towards 12600 the lower band of the channel. Buyers will need to push over 14000 the round number and 20 sma and 14200 the upper band of the channel for buyers to gain traction.

FX markets USD falls, EUR rebounds

USD is falling as the mood in the market improves. The ceasefire to allow civilians out of Ukraine cities and optimism builds ahead of tomorrow’s peace talks. Today there is little on the data from leaving the USD to the will of sentiment.

AUDUSD is outperforming peers as the riskier aussie charges higher, shrugging off weaker than expected consumer confidence. Morale dropped sharply in March after Russia invaded Ukraine.

EURJPY is bounding higher, boosted by a combination of Euro strength and Japanese yen weakness. The softening of Russia and Ukraine’s tones has lifted the euro, amid hopes of a diplomatic solution. Meanwhile, safe-haven outflows are pulling the yen lower.

GBP/USD +0.34% at 1.3150

EUR/USD +0.65% at 1.0972

Oil falls from 14 year highs

Oil prices are edging lower as volatility in the market continues. Oil trades have plenty to weigh up as the mood in the market improves. A softening of tone from both Russia and Ukraine is boosting hopes of a breakthrough pulling oil prices lower. This comes after the US banned Russian oil imports and the UK is phasing them out across the year.

However, many companies were already shunning Russian oil so this could be a case of buy the rumor sell the fact.

Furthermore, the IEA have suggested that they could release more than the 60 million barrels last week, which was described as an initial response.

Finally, Iran’s chief negotiator is back in Vienna to continue talks, with hopes building of a revival o the Iran nuclear deal which could see Iranian oil come flooding back to the market.

API crude oil stock piles unexpectedly rose last week by 2.8million barrels, EIA crude stockpile data is due later.

WTI crude trades -2.2% at $118.15

Brent trades -2.09% at $123.93

Learn more about trading oil here.

Looking ahead

15:30 EIA crude oil inventories

How to trade with City Index

Follow these easy steps to start trading with City Index today:

Open a City Index account, or log-in if you’re already a customer.
Search for the market you want to trade in our award-winning platform.
Choose your position and size, and your stop and limit levels
Place the trade.

From time to time, StoneX Financial Pty Ltd (“we”, “our”) website may contain links to other sites and/or resources provided by third parties. These links and/or resources are provided for your information only and we have no control over the contents of those materials, and in no way endorse their content. Any analysis, opinion, commentary or research-based material on our website is for information and educational purposes only and is not, in any circumstances, intended to be an offer, recommendation or solicitation to buy or sell. You should always seek independent advice as to your suitability to speculate in any related markets and your ability to assume the associated risks, if you are at all unsure. No representation or warranty is made, express or implied, that the materials on our website are complete or accurate. We are not under any obligation to update any such material.

As such, we (and/or our associated companies) will not be responsible or liable for any loss or damage incurred by you or any third party arising out of, or in connection with, any use of the information on our website (other than with regards to any duty or liability that we are unable to limit or exclude by law or under the applicable regulatory system) and any such liability is hereby expressly disclaimed.

City Index is a trading name of StoneX Financial Pty Ltd.

The material provided herein is general in nature and does not take into account your objectives, financial situation or needs.

While every care has been taken in preparing this material, we do not provide any representation or warranty (express or implied) with respect to its completeness or accuracy. This is not an invitation or an offer to invest nor is it a recommendation to buy or sell investments.

StoneX recommends you to seek independent financial and legal advice before making any financial investment decision. Trading CFDs and FX on margin carries a higher level of risk, and may not be suitable for all investors. The possibility exists that you could lose more than your initial investment further CFD investors do not own or have any rights to the underlying assets.

It is important you consider our Financial Services Guide and Product Disclosure Statement (PDS) available at www.cityindex.com/en-au/terms-and-policies/, before deciding to acquire or hold our products. As a part of our market risk management, we may take the opposite side of your trade. Our Target Market Determination (TMD) is also available at www.cityindex.com/en-au/terms-and-policies/.

StoneX Financial Pty Ltd, Suite 28.01, 264 George Street, Sydney, NSW 2000 (ACN 141 774 727, AFSL 345646) is the CFD issuer and our products are traded off exchange.