Stocks Rally From Biggest Slump in Month as Gold Drops With Gas

New York (Mar 4)    Stocks rose, with a global index rebounding from the biggest drop in a month, and the ruble rallied as Russia stepped back from escalating the crisis in Ukraine. Bonds retreated, gold fell from a four-month high and U.K. natural gas tumbled after the biggest gain since 2011.

The MSCI All-Country World Index increased 0.5 percent at 7:21 a.m. in New York. Standard & Poor’s 500 Index futures jumped 1.2 percent. Russia’s Micex Index climbed 5.3 percent after $55 billion was erased from the value of the country’s equities yesterday. Germany’s 10-year bund yield rose five basis points to 1.60 and the yen weakened against all of its 16 major peers. Gold fell 1.3 percent, Brent crude slid 1.6 percent and U.K. natural gas dropped 5.5 percent.

Russian President Vladimir Putin said today he’s not considering taking control of Crimea and would send in troops to Ukraine only in an extreme case. Stocks gained earlier after Interfax reported Putin ordered some troops back to bases after military exercises ended while forces remained in Ukraine’s Crimea region. U.S. Secretary of State John Kerry headed to Kiev after Russia told the United Nations that its intervention in Crimea is legal.

“It’s hard to guess how the situation will develop in the Russia and Ukraine areas but for now the markets are seeing some kind of relief,” said Christian Reicherter, an analyst at DZ Bank AG in Frankfurt said. “Putin just ended some military exercises and that’s driving bunds lower.”

Ukraine’s ‘Coup’

Kerry’s trip to Kiev, the scene of the violent uprising that precipitated the current crisis, comes after the leaders of the Group of Seven nations condemned Russia’s actions as a clear violation of Ukraine’s territorial integrity.

The ouster of Ukrainian President Viktor Yanukovych was overthrown in an unconstitutional “coup” and he is the legitimate president, Putin said at a press conference today.

The Stoxx Europe 600 Index climbed 1.9 percent, with all but 18 shares in the gauge advancing. Trading was 19 percent higher than the 30-day average, according to data compiled by Bloomberg. The VStoxx Index, which tracks equity volatility, fell 16 percent after jumping 30 percent yesterday, the most since Europe’s bull market began three years ago.

Source: WashingtonPost