[Summary] Market Cheers 'Russian Troop Withdrawal'... Biden Warns "No Evidence," Cautions Optimism

[Image source=Yonhap News]

[Asia Economy New York=Special Correspondent Joselgina] U.S. President Joe Biden stated on the 15th (local time) that he has "not yet verified" Russia's announcement of partial troop withdrawals near the Ukraine border and emphasized that "the threat of a Russian invasion of Ukraine remains high." This remark came shortly after Russian President Vladimir Putin appeared to step back, saying he does not want war.

On the eve of the predicted invasion date of February 16, President Biden said in a national address, "The situation clearly indicates a possible invasion of Ukraine."

He explained, "We have not yet confirmed that Russian troops are returning to their headquarters," adding, "According to our analysis, they remain in a threatening deployment, with 150,000 Russian troops surrounding Ukraine near the borders with Ukraine and Belarus."

The national address was delivered shortly after news of Russia's partial troop withdrawal, which somewhat eased invasion fears. It is interpreted as a move to caution against optimistic views that the possibility of military conflict around Ukraine has diminished, while simultaneously reapplying pressure on Russia.

From the U.S. perspective, it appears premature to determine the authenticity of Russia's ongoing large-scale military operations. In this regard, White House Press Secretary Jen Psaki stated in a subsequent briefing that the U.S. would consider a verified reduction of Russian forces at the Ukraine border as a success in negotiations with Russia.

President Biden reaffirmed strong sanctions against Russia, including halting the Nord Stream 2 gas pipeline project connecting Russia and Germany, warning that if Russia invades Ukraine, it will face "overwhelming international condemnation." He pointed out, "If Russia invades Ukraine, it will be a war without justification or reason."

However, he also left the door open for diplomacy. President Biden said, "We must give every opportunity until diplomacy succeeds," mentioning that "new arms control and transparency enhancement measures are being proposed."

He further asserted, "The U.S. and NATO are not a threat to Russia. We are not targeting the Russian people." He added, "The U.S. does not want direct confrontation with Russia, but if Russia attacks Americans in Ukraine, we will respond strongly."

As perceptions grew that the imminent war crisis had been averted, global stock markets collectively cheered on the day.

In New York, the Dow Jones Industrial Average rose 1.22%, the S&P 500 increased 1.58%, and the Nasdaq Composite climbed 2.53%. In European markets, the Euro Stoxx 50 closed up 1.95% from the previous session. In South Korea, as of 10 a.m. on the 16th, the KOSPI rebounded 1.6%, and the KOSDAQ surged 3.3%. Japan’s Nikkei 225 also opened with a 1.50% gain.

International crude oil prices, which had surged due to geopolitical concerns, showed a decline. Benchmark West Texas Intermediate (WTI) crude closed at $92.07 per barrel, down $3.39 (3.6%) from the previous session.