Markets climb and oil drops as geopolitical tensions ease

Global markets have jumped and oil has hit a 14-month low as geopolitical tensions between Russia and Ukraine show signs of abating.

The FTSE 100 index closed 0.8% up at 6,741 yesterday and the price of Brent dropped as much as 2% to $101.6 per barrel, as talks between Russia and the West seemed to make progress. Geopolitics has placed a downward pressure on stocks for much of the summer, with tensions in Ukraine and problems in Iraq dominating the news headlines. The positive developments reported on Monday have sent markets across Europe soaring, with Germany's DAX closing as much as 1.7% higher, and France's CAC 40, Spain's Ibex 35 and Italy's FTSE MIB up 1%, 1.3% and 0.7%, respectively. US stocks also rose o...