Russian Foreign Minister Sergey Lavrov told Russian President Vladimir Putin in a meeting on Monday that the US had put forward concrete proposals on reducing military risks and that he could see a way to move forward with talks. He added that he had proposed to continue with diplomatic work, though warned that indefinite talks are not possible, but that there was always a chance for agreement. 

Lavrov did, however, tell Putin that the responses from the EU and NATO to Russian security proposals have not been satisfactory and that Russia will try to get responses from all EU countries. Russia will also continue to try to get a response from the US on unanswered questions. 

Market Reaction

The fact that Lavrov recommended a continuation of diplomacy to President Putin has been taken by the market as positive news that reduces the risk of imminent war. US equity futures have spiked as a result, with e-mini S&P 500 futures now in the 4420s having previously traded in the 4380 area. 

Elsewhere, as risk appetite has improved and risk assets rallied, safe havens have unsurprisingly taken a dip in recent trade. The US Dollar Index dropped to the 96.10s from previously in the 96.30s, USD/JPY spiked to the 115.40 area from previously in the 115.10s and US 10-year yields spiked higher to around 1.95% from around 1.92%.