Russia’s ruble rebounded from a record low while stock-index futures in the U.S. and Europe advanced after a report that President Vladimir Putin had ordered troops back to bases after military exercises concluded amid tensions in Ukraine’s Crimea region. Gold fell with oil.
The ruble strengthened 0.7 percent against the dollar at 7:23 a.m. in London, while the yen, seen as a haven currency, slipped against all major peers after its highest close since Feb. 5. Standard & Poor’s 500 Index futures jumped 0.7 percent while contracts on the Euro Stoxx 50 Index surged 1 percent. A measure of stocks in emerging markets erased declines as Russia’s Micex Index climbed 2.9 percent after $55 billion was wiped from the country’s equities yesterday. Gold fell 0.9 percent from a four-month high and Brent crude slid 0.8 percent.
Putin’s order came after the exercises in the country’s west finished as scheduled, Interfax reported, and as U.S. Secretary of State John Kerry heads to Kiev after Russia told the United Nations that its intervention in Crimea is legal. The crisis sent global stocks down the most in a month and haven assets soaring yesterday. Chinese lawmakers meet on economic policy starting tomorrow. Federal Reserve vice-chairman nominee Stanley Fischer appears before the Senate.
“The timing of the report on Russia’s troop recall coincides with an improvement in risk appetite,” said Tim Condon, Singapore-based head of Asia research at ING Groep NV. “The markets see the news signaling a reduced likelihood of military hostilities breaking out in Crimea. There’s still an unpredictable event risk but what happens today will make people feel more comfortable and is positive for risk assets.”