The dollar fell against a basket of peer currencies on Tuesday following reports of progress in peace talks between Russia and Ukraine, giving a lift to the euro and reducing the safe-haven appeal of the greenback.
Russia promised at peace talks in Istanbul on Tuesday to scale down its military operations around Kyiv and northern Ukraine, while Ukraine proposed adopting a neutral status but with international guarantees that it would be protected from attack.
The dollar, which had risen as much as 3.4% since Russia invaded Ukraine, declined 0.914% to 98.181, as traders looked to currencies deemed riskier.
U.S. equities futures dipped slightly Tuesday evening after stocks extended their rally in the previous session, even as fears of an inverted yield curve sparked recession concerns and investors continued watching developments play out in Ukraine.
Futures tied to the Dow Jones Industrial Average slipped by 27 points, or 0.08%. S&P 500 futures fell 0.1% and Nasdaq Composite futures lost 0.1%.
In regular trading, the Dow added 338 points, or 0.97%, and the S&P 500 rose 1.23% – both for their fourth straight day of gains. The Nasdaq Composite climbed 1.84%, and now sits less than 10% from its record.
Oil prices dropped on Tuesday, extending losses from the previous day after Russia called peace talks with Ukraine constructive and China’s new lockdowns to curb the spread of the coronavirus hit fuel demand.
Brent crude fell 2%, or $2.25, to end the day at $110.23 a barrel. U.S. West Texas Intermediate (WTI) crude settled 1.62%, or $1.72, lower at $104.24 per barrel. Both benchmarks lost about 7% on Monday.
Gold prices fell more than 1% to a one-month low while palladium sank nearly 9% on Tuesday, as signs of progress in Russia-Ukraine peace talks dented demand for precious metals.
Spot gold fell 0.54 % to $1,912.82 per ounce. U.S. gold futures dropped 1.5% to $1,910.70.
Silver and platinum both fell 1.1% to $24.56 per ounce and $973.84 respectively.
The pan-European Stoxx 600 closed up by 1.7%, with autos soaring 5.9% to lead the gains as all sectors traded in positive territory except basic resources and oil and gas, which fell 2.2% and 1.9% respectively.
In terms of individual share price movement, French auto parts maker Faurecia added 17% to lead the Stoxx 600 amid a rally in auto stocks. On the opposite end of the benchmark, German chemicals firm K+S fell over 10%.