LONDON, Feb 23 (Reuters) – Global stocks broke a four-day slide and demand for safe-haven assets waned on Wednesday, with investors waiting to see what Russian President Vladimir Putin does next after sending troops into separatist regions of Ukraine.
The initial push to send soldiers to Donetsk and Luhansk this week triggered coordinated, yet modest sanctions from Western nations, albeit with the prospect of more to come if Moscow seeks to push further into the country.
S&P 500 (.ESC1) stock futures pointed to a 0.8% higher open, rebounding after officially entering correction territory in the prior session.
“In the end what investors want to know is: does this impact earnings or not? If not, the temptation to buy the dip is high,” said Dirk Willer, global head of macro and asset allocation at Citi.
“Markets tend to see geopolitical events as opportunities,” he said, adding past years had shown this was the correct policy to adopt.”
Despite the bounce, commodity prices continue to remain elevated, with traders nervous that supplies could be curtailed if the situation on Europe's eastern edge escalates.
Brent crude was last up 0.4% at $97.21 a barrel, while West Texas Intermediate was up 0.3%.
Europe's benchmark gas price was up 4.4%, however, adding to a hefty gain a day earlier after Germany halted Russia's Nord Stream 2 gas pipeline. read more
After posting the sharpest leap in three-and-a-half years on Tuesday, wheat futures were down 0.7%. Corn futures also pulled back from an eight-month high, down 0.4%.
Gold edged lower, down 0.1% at $1,896 an ounce.
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