Cease-fire talks support stocks
Demand for risky assets retrurned to the markets as Russia and Ukraine agreed on steps toward a cease-fire. Putin suggested a 7-point plan to resolve the conflict. No final decision has been made yet, but the intentions of the government were a positive signal for the markets. A lasting cease-fire would be the biggest breakthrough in the long-playing conflict that has stolen more than 2,600 human lives.
As a result, US Treasuries and the dollar fell. The yield on 10-year Treasury notes climbed to a 3-week high. At the same time, global stocks rallied: the Standard & Poor’s 500 Index hit an all-time high of
Chart. S&P 500 (Source: Bloomberg)