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Stocks Firmer as Markets Watch Next Round of Peace Talks

EQUITIES
  • Equities across Europe trade firmer, with US futures following suit as market focus turns to the next round of peace talks held between Russian and Ukrainian representatives this afternoon. Reports of progress across the weekend have raised hopes of a potential ceasefire or more solid use of humanitarian corridors in the near future, helping indices retrace some of last week's lost ground.
  • Europe's financials and industrials sectors are leading gains, with energy the sole underperformer as oil prices retrace the recent rally. Germany's DAX is the best performing market on the continent, with significant rallies in the likes of Deutsche Bank (+8%) and Volkswagen (+7%) fuel strength.
  • S&P E-Minis trend needle continues to point south. The contract remains above the Jan 24 low of 4094.25 and the key support. A break of this level would confirm a resumption of the downtrend. The 20-day EMA, at 4314.09, represents an important near-term resistance. A clear break of this EMA is required to suggest scope for a stronger short-term recovery towards the 50-day EMA at 4415.63.

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