After the meeting between Putin and Macron, the markets have regained some losses from the first month of the year.
Macron: "Putin told me that he would not be behind any escalation in Ukraine". Instead, the meeting is not solving the problem between the Russia and Ukraine, but markets have anticipated a lower narrative tone in the future.
Better than expected, Atlanta FED GDP now rises to 0,7 from 0.1 also fuels a positive Risk tone.
Some good news from the inflation front announced by ECB Villeroy also helps stocks. Villeroy said:
“Inflation hump should be temporary.
French inflation is to gradually diminish within a month.
I guarantee we will do what is needed for inflation to return to around 2% over time.”
Stocks are up SPX500 0,84%, NDQ 1,21% DJI +1% and VIX -5.67%.
Instead of some support in stocks, investors are concerned about the tightening announced in March from FED.