U.S. futures, euro gain as war escalation fears ease

U.S. equity futures rose in choppy trading after a rocket strike inside the Polish border reminded investors of the potential for escalation in the Russia-Ukraine war.

While Europe’s Stoxx 600 Index snapped a four-day rising streak, contracts on the S&P 500 traded 0.4 per cent higher, and those on the Nasdaq 100 gained by a similar magnitude after U.S. President Joe Biden said the missile was unlikely to have been fired by Russia. His comments knocked the yen and dollar lower, as demand for safe-haven assets gradually faded, while benchmark Treasury yields also crept higher.  

The euro bounced 0.8 per cent to the dollar, while the zloty also recovered after shedding more than one per cent earlier. 

The Associated Press cited unnamed U.S. officials as saying initial findings pointed to the projectile being fired by Ukrainian forces at an incoming Russian one.