Yesterday's session can be described as a so-called relief rally. Investors seemed to focus on returning to risky assets, abandoning gold, among others. The market seems to be counting on a ceasefire between the armies of Russia and Ukraine after both sides softened their demands.
On Wednesday, President Volodymyr Zelensky's foreign policy adviser said Ukraine was open to neutrality talks as long as it received security guarantees, but would not give up "an inch" of its territory. Today, in turn, a meeting of foreign ministers of the two countries is to be held in Turkey, which also gives hope for talks between the sides.
Important voice of the United Arab Emirates
Hopes for an easing of the war may have contributed to a change in market sentiment and a decline in energy commodity prices. WTI crude oil futures oscillated around $110 per barrel on Thursday, yet during the previous session they fell 12 percent from levels last seen in 2008.
However, one of the main reasons for such a sharp bump in the price could be the United Arab Emirates' call to persuade OPEC+ to increase production faster to ease the turmoil in energy markets. Earlier this week, OPEC and Chevron chiefs said there was no shortage of oil and Iraq insisted there was no need for an above-plan increase in production.
Gold and oil - the biggest declines in months
The market reversed just days after oil prices hit their highest level since 2008 on Monday. Yesterday's retreat may mark the biggest drop since November in a single day.
Gold also seemed to lose value. The precious metal may have recorded its biggest drop in 14 months on Wednesday, retreating below $2,000 per ounce.
Daniel Kostecki, Director of the Polish branch of Conotoxia Ltd. (Forex service)
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