Global equities and bond yields fell, and while oil prices rose to a multi-year high, Russia’s invasion of Ukraine continued to cross markets.
S&P 500 futures fell 0.3%. Blue-chip Dow Jones Industrial Average Futures also fell 0.3%, while the Nasdaq-100 Heavy Technology Futures fell 0.4%.
In Europe, the Stoxx Europe 600 was down 1.2%. Shares of the Russian economy were the hardest hit by the Austrian Raiffeisen Bank,
9% less in Ukraine and Russia. Polymetal International,
POLY – 24.40%
A London-based company that owns gold mines in Russia fell by almost a quarter, and losses in the last two days were more than 75%. The gunsmiths were among the best.
Safe shelter assets were demanded, raising gold prices and lowering government bond yields. The benchmark 10-year U.S. Treasury bill yield fell to 1.783% on Tuesday from 1.836% on Monday. German government bond yields fell in negative territory for the first time since January. Gold prices rose by 0.9%.
As oil prices rose, more than $ 100 a barrel rose to its highest level since 2014. Brent crude, an international oil benchmark, rose more than 5% to $ 103.11 a barrel. The European reference price for natural gas rose by more than 13%. Members of the International Energy Agency may agree on Tuesday to release supplies from oil reserves in an attempt to cover up the rise in crude oil prices.
Shares of energy companies gained along with oil prices, while Occidental Petroleum and Devon Energy rose more than 2% in pre-market trade. Meanwhile, shares of Target rose more than 12% after announcing strong holiday sales. Albertsons rose more than 9% after the supermarket chain said it had begun a strategic review. He earned more than 8% of his working day on Monday night after reporting earnings that exceeded estimates.
Stock indices around the world have been volatile in recent days as investors try to measure the global economic impact of the invasion and the resulting sanctions. Reductions in Russia’s supply of raw materials could boost inflation, but investors expect the overall impact on the world’s largest economies to be silenced.
The ceasefire talks have not yielded any specific results so far, but investors have welcomed the start. However, Moscow is expected to increase the pace of attacks on major Ukrainian cities and is shedding manpower and equipment into the country.
“I’m not sure what we’ll see from the negotiations, but there will be no break on the ground because Putin needs to come out of this war to show something,” said Hani Redha, portfolio manager at PineBridge Investments. “You will only see the strong decision of Russia.”
The geopolitical crisis came at a time when market sentiment was already fragile. Economies have been facing the highest inflation for decades, and central banks are under pressure to raise interest rates. Investors are trying to gauge how the struggles in Ukraine could affect the central bankers’ forecasts.
Mr Redha said the conflict could put even more pressure on inflation, threatening to reduce Russia’s oil and gas exports. Russia is the largest exporter of gas and the largest supplier of crude oil.
Russian markets have been hit hard by the invasion, and as a result of the resulting sanctions, investors have shunned Russian shares. A sharp and sudden rise in the interest rate of the national central bank helped the ruble to fall.
The Russian ruble recovered more than 6% of its value against the dollar on Tuesday, after falling by almost 30% on Monday. Market data services have shown limited price updates this week, suggesting few transactions are taking place. The Russian stock market was closed after falling last week.
The London Stock Exchange suspended the trading of shares of the Russian VTB Bank after the New York Mellon Bank resigned as a depository of the company. JPMorgan Chas also stopped trading the two funds due to the crisis in Ukraine.
Later in the day, investors will watch a survey of supply management by the Institute of Supply Management, which shows that U.S. plant activity continued to grow as the Omicron wave faded in February.
In Asia Pacific, the stock markets were mixed. Japan’s Nikkei rose 225% to 1.2% and Hong Kong’s Hang Seng index rose 0.2%.
Write to Will Horner at firstname.lastname@example.org
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With the fall in stock futures, oil is again above $ 100 in penalties
Source link With the fall in stock futures, oil is again above $ 100 in penalties