European Markets Pull Back

The Stoxx 600 index dipped 0.8 percent in early trade; cars led a 1.9 percent drop, while oil and gas companies rose 1.7 percent.

In terms of individual stock price movement, Nokian Tyres of Finland sank 6.6 percent; Lundin Energy of Sweden rose 4.7 percent.

Investor confidence strengthened on Tuesday due to talks between Russian and Ukrainian officials in Turkey. Russia’s deputy defense minister said Moscow had resolved to “dramatically” reduce its military presence near Kyiv.

Following the negotiations in Istanbul, Russian Foreign Minister Alexander Fomin announced that Russia would reduce military activities near Kyiv and Chernihiv for peace talks to progress. Russia had earlier stated that military actions in other parts of Ukraine were reduced; however, it has now resumed its offensive.

On Tuesday, the Dow Jones Industrial Average futures jumped 200 points, or 0.6 percent, as growing anticipation for a cease-fire boosted investor sentiment. The S&P 500 increased by 0.6 percent, while Nasqad futures increased by 0.7 percent. Meanwhile, the price of West Texas Intermediate crude oil, which had risen sharply after Russia’s invasion of Ukraine, has dropped more than 4% to $100 a barrel.

Asia-Pacific stocks were neutral in Wednesday trade as investors awaited developments in the Ukraine conflict. Traders in the United States are keeping an eye on a flurry of critical economic reports and the Federal Reserve’s scheduled interest rate hikes.

The Job Opportunities and Labor Turnover Survey revealed 11.3 million job openings, up from 11.1 million projected. On Friday, ADP will issue its private payrolls data, which will be released ahead of the much regarded monthly jobs report.

China Stocks Lead Gains in Asia

On Wednesday, Asia-Pacific stocks were mainly higher than mainland Chinese stocks.

The Hang Seng index in Hong Kong closed at 22,232.03, up 1.39 percent.

After resuming trading on Wednesday, Hong Kong-listed shares of beleaguered developer Evergrande’s electric car company fell 10.8%. Meanwhile, China Evergrande Group’s Hong Kong-listed shares will remain suspended until further notice, according to a statement released by the company on Tuesday.

In Hong Kong, shares of streaming companies Kuaishou and Bilibili fell 6.24 percent and 2.48 percent, respectively. According to a report in the Wall Street Journal, China is preparing additional limits for its live-streaming sector. The Hang Seng Technology index increased by 0.34 percent to 4,622.57 points. South Korea’s Kospi index rose 0.21 percent to 2,746.74 at the close. The S&P/ASX 200 index in Australia rose 0.67 percent to 7,514.50 at the close of trading.

The Nikkei 225 index fell 0.8 percent to settle at 28,027.25; shares of telecommunications major KDDI plunged more than 4% to 1,967.60. Furthermore, the Topix index fell 1.21 percent.

Outside of Japan, MSCI’s broadest index of Asia-Pacific stocks rose 1.3 percent. Investors kept an eye on U.S. Treasury yields on Wednesday, with markets now looking for a potential inversion in the spread between the 2-year and 10-year rates.

The benchmark 10-year Treasury note yielded 2.378 percent last week, while the 30-year Treasury bond yielded 2.4989 percent. The yield on the 5-year Treasury note was 2.4566 percent, while the yield on the 2-year Treasury note was 2.3123 percent. Yields move in the opposite direction of prices.