closed higher on Friday, as did markets in the Asia-Pacific region.
the Dow (INDU) rose more than 200 points in the
US and major indices seemed on track to end a three-week
Share prices tend to rise after news of Ukrainian earnings or
improvements on the ground, explains Joseph Brusuelas, chief
economist at RSM US.
President Volodymyr Zelensky claimed Friday that the country’s
military has recaptured more than 1,000 square kilometers of
territory since the beginning of this month, while continuing in
the Kharkov and Kherson regions.
Over the past
three days, Ukrainian troops have raised their country’s flag in
the Kharkiv settlement of Shevchenkove, a major Russian logistics
hub in Ukraine, according to a photo located by CNN.
If you chart those three days in the direction of the market,
said Quincy Krosby, chief global strategist for LPL Financial, it’s
clear that this is a contributing factor to equity gains. “This is
good news, even on the margins,” she added.
The Russian invasion of Ukraine has slowed global growth and
increased inflation due to major energy disruptions – Russia
accounts for more than 10% of global oil and natural gas
production. Grain supply has also been disrupted, leading to a
spike in commodity prices.
A shock in energy prices and a linchpin by the central bank to
fight inflation in Europe have further dampened investor sentiment.
Recessions now seem certain in Europe as gas prices continue to
rise into the winter.
The war in Ukraine
has been cited as a factor in about 250 downgrades in S&P
Global’s credit rating or downgrades its outlook since it began in
late February. The rise in energy costs and interest rates
worldwide means the impact is likely to
“This lack of energy is expected to cause the European Union’s
economy to plummet this winter. Europe in recession will affect US
trade,” said Anthony Denier, CEO of Webull. “But if Ukraine
continues to win, maybe the gas problem will be solved and everyone
will be happy. So people are buying stocks today.”