The FTSE 100 rose on Tuesday as London’s leading index bounced back from heavy selling on Monday sparked by Russia- Ukraine tensions.
Just as Monday’s selling was a consequence of developments in Russia-Ukraine tensions, Tuesday’s rally represented a shift in sentiment after signs of de-escaltion.
The FTSE 100 rose after Russia said they were ordering some troops back to their barracks in stark contrast to event comments from Western officials an attack was imminent. Russia had always maintained they had no intention of invading Ukraine.
The FTSE 100 was 0.74% higher at 7,585 going into the close on Tuesday as European indices also gained.
“Today marks something of a calm after the storm, as the FTSE 100 recovered some ground lost yesterday – when the market saw its biggest losses of 2022 to date,” says AJ Bell financial analyst Danni Hewson.
“The moves higher reflect some modest easing of tensions at the Ukrainian border, with Russian troops apparently returning to base for the time being. Oil prices retreated and shares across Europe were higher as investors breathed a sigh of relief.
“It remains a highly tense and uncertain situation though and the US and UK appear to still be warning of an imminent invasion which would likely create even more pronounced volatility in the markets.”
Evraz was among the top risers after the Russia-focused miner crashed more than 30% on Monday. Evraz shares were 4% stronger but no where near recovering yesterday’s drop.
Mining peer Glencore alway enjoyed the support of investors after it’s announced a rebound in profits for 2021 helped by stronger commodity prices. Earnings per share rose to 38 cents per share compared to a 14 cents per share loss in 2020.
“Against the strong commodity backdrop, and leveraging the unique combination of our transition and energy commodities, along with the global reach and scale of our marketing business, the Group delivered an 84% increase in Adjusted EBITDA to $21.3 billion,” said Glencore’s Chief Executive Officer, Gary Nagle.
“Marketing delivered another robust performance, with Adjusted EBIT up by 11% to $3.7 billion, while multi-year or record high prices for many of our commodities, underpinned the 118% jump in Industrial Adjusted EBITDA to $17.1 billion. Net income attributable to equity holders was $5.0 billion.”