After an uneasy start in Asia, most of the region pushed into positive territory
Markets euro rise as Russia turns on gas taps. Asian and European equities mostly rose with the euro Thursday after Russia resumed gas supplies to Europe, while traders await a crucial ECB policy meeting.
After an uneasy start in Asia, most of the region pushed into positive territory following news that the Nord Stream 1 pipeline’s taps had been switched back on after 10 days of maintenance.
The announcement removed a measure of uncertainty among traders who had feared Moscow would keep gas flows cut in retaliation for Brussels’ sanctions imposed over Vladimir Putin’s invasion of Ukraine.
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Putin had said the Nord Stream 1 pipeline would be turned back on, but added that supplies would be limited unless a row over some elements of the sanctions is resolved.
But Western leaders remain cynical over his plans ahead of the northern hemisphere winter, and the European Commission has urged EU members to reduce demand for natural gas by 15 percent over the winter to counter Russia’s “blackmail”.
The IMF warned Wednesday that a halt in supplies could slash 2022 GDP by 1.5 percent.
After a negative start, Asian and European equities mostly rose, with the more upbeat mood following another rally on Wall Street thanks to healthy earnings.
Tokyo, Sydney, Seoul, Mumbai, Taipei, Bangkok and Wellington advanced while London, Paris and Frankfurt were up after the open.
But Hong Kong, Shanghai, Singapore and Manila fell.
Analysts remain cautious about the near-term outlook for the global economy as it is rattled by a range of issues including the Ukraine war, an energy crisis, and China’s slowdown and supply chain snarls.
The euro climbed again, having fallen to parity with the dollar last week partly because of the European Central Bank’s slow response to inflation compared with the Federal Reserve’s series of sharp rate hikes.
