Stock markets around the world were mostly flat yesterday as investors digested comments from Russian President Vladimir Putin that indicated a possible easing to geopolitical concerns over Ukraine that have recently weighed on investors.
Gold, viewed as a safe-haven asset, fell 0.8 per cent, while the US dollar rose slightly against a basket of currencies, though it remained near a six-month low.
Market participants also paid close attention to testimony from Federal Reserve Chair Janet Yellen, who said the US economy was still in need of support from the central bank given the “considerable slack” in the labour market. She also cited the housing sector and geopolitical tensions as issues of concern.
That the Fed sees a need for more accommodation “may mean the economy isn’t recovering as much as we were expecting”, said Eric Green, senior portfolio manager at Penn Capital Management in Philadelphia.
Putin said he was ready to discuss a way out of the Ukrainian crisis and called on separatists in east Ukraine to postpone a May 11 referendum on the status of the mostly Russian-speaking region.
“We need confidence that the Russia situation remains isolated; getting that would do a lot to stabilise the market. Of course, anything that suggests more escalation is on the way would be a real negative,” said Green, who helps oversee about $7.5 billion in assets.
We need confidence that the Russia situation remains isolated- senior portfolio manager
The Dow Jones industrial average was up 81.98 points, or 0.50 per cent, at 16,483.00. The Standard & Poor’s 500 Index was up 2.34 points, or 0.13 per cent, at 1,870.06. The Nasdaq Composite Index was down 46.77 points, or 1.15 per cent, at 4,033.99.
The Nasdaq was pressured by Whole Foods Market Inc, which plummeted more than 20 per cent to $38.06 on disappointing results, and by Yahoo Inc, which lost 5.6 per cent at $34.47. The Dow gained on strength in UnitedHealth Group, which added 1.9 per cent following positive results from peer company Humana Inc.
The benchmark 10-year US Treasury note was up 4/32, the yield at 2.5788 per cent. The US dollar index rose 0.08 per cent against a basket of currencies. Both the yen and euro were flat against the dollar.
European shares rose 0.1 per cent after trading lower earlier in the session. The MSCI International ACWI Price Index fell 0.18 per cent.
Oil prices rose, underpinned by tensions in Ukraine, though Brent’s premium over US prices narrowed after an industry report showed a sharp draw in inventories in the world’s largest oil consumer.
US crude futures rose one per cent to $100.50 while Brent crude was up 0.6 per cent.