Once again, the rise in government bond yields is acting as the catalyst for the sell off in stocks.
The relationship between Russia and Ukraine has gone from bad to worse as it appears that Moscow is calling for the recognition of two pro-Russian regions in Ukraine.
The back and forth between Russia and Ukraine is weighing on sentiment in the markets. Lingering tensions and concerns that Russia will maintain a heavy military presence on its border with Ukraine has prompted dealers to sell stocks.
Yesterday the markets cheered the news that Russia will be scaling back its military hardware on the border with Ukraine, but today there are reports that more Russian soldiers are being sent to the front line.
The mood in the markets is upbeat as the Russian government announced it will start to reduce the number of troops its has stationed on the Ukrainian border, which sent out a message that a conflict is very unlikely to happen.
The prospect of Russia invading Ukraine is hammering European equity markets. Tensions have been running high in the past few days as governments around the world have been advising their citizens to leave Ukraine, which speaks to the threat of war.
Stock markets are still being driven by fears the Federal Reserve will lift interest rates several times this year, but there is division with regards to how many hikes will be introduced.
Volatility in the markets picked up today following the release of the US CPI data, as the reading jumped from 7% to 7.5%, a new 40 year high.
Equity markets are higher across the board as European traders picked up the bullish baton from their counterparts in Asia overnight, and the optimistic mood is doing the rounds in the US too.
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