May 27, 2022

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Stocks drop, oil tops $100 again amid sanctions

Stocks drop, oil tops $100 again amid sanctions

US stock indices opened lower and bond yields fell, while oil prices rose to multi-year highs Russia’s invasion of Ukraine Keep penetrating the markets.

The S&P 500 fell 0.3% on Tuesday. The Dow Jones Industrial Average of blue chip futures was down 0.5%, while the high-tech Nasdaq Composite was down 0.3%.

In Europe, the Stoxx Europe 600 Index is down 1.1%. Shares related to the Russian economy were the hardest hit, with Austria

Raiffeisen BankAnd the

Which has large operations in Ukraine and Russia, down 9%.

Polymetal InternationalAnd the

poly -20.62%

A company listed in London and has gold mines in Russia, fell by a quarter, bringing its losses over the past two days to more than 75%. The gunsmiths were among the best performers.

The demand for safe-haven assets, which led to higher gold prices and lower government bond yields. The 10-year US Treasury yield fell to 1.780% on Tuesday from 1.836% on Monday. The yield on German government bonds fell into negative territory for the first time since January. Gold prices rose 1.1%.

Oil prices rose again above $100 a barrel, to their highest level since 2014. Brent crude, the international oil standard, rose more than 5% to $103.11 a barrel. Benchmark European natural gas prices jumped more than 16%. members The International Energy Agency could agree as early as Tuesday To release supplies from oil reserves in an effort to curb the rise in crude oil prices.

Energy stocks rose along with oil prices

Occidental Petroleum

And the

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Devon Energy

Each rise more than 2% in Pre-market trading. Meanwhile, Target shares jumped more than 12% after the announcement Strong sales during the holiday period.

Albertson

It rose more than 9% after the supermarket chain said it did. Started a strategic review. Workday gained more than 8% after reporting earnings late Monday that beat estimates.

Stock indices around the world have been volatile in recent days as investors try to gauge the potential global economic impact from the invasion and the resulting sanctions. Restricted supplies of Russian commodities could add to already high inflation, but investors are hopeful that the overall impact on the world’s largest economies will be muted.

Russians line up to use ATMs as ordinary citizens begin to feel the impact of Western-allied sanctions on the country in the wake of Moscow’s invasion of Ukraine. Meanwhile, the Moscow Stock Exchange remained closed Tuesday. Photo: AP Photo / Dmitri Lovetsky

Ceasefire talks have so far failed to produce tangible results, but investors have welcomed the fact that they have begun. However, Moscow is expected to increase the frequency of its attacks on major Ukrainian cities and pump manpower and equipment into the country.

“I am not sure what we will see from the negotiations, but on the ground there will be no complacency because Putin has to come out of this war with something to offer her,” said Hani Reda, portfolio manager at PineBridge Investments. “You will only see a design stronger than Russia.”

The geopolitical crisis came when market sentiment was already fragile. Economies are facing the highest inflation in several decades, adding pressure on central banks to raise interest rates. Investors are trying to gauge the impact of the fighting in Ukraine on the expectations of central bankers.

Mr. Reza said the conflict could further pressure inflation by threatening to restrict Russian exports of oil and gas. Russia is the largest single exporter of gas and a major supplier of crude oil.

Traders at the New York Stock Exchange on Monday.


Photo:

Ali Joseph / Nice / Zuma Press

Russian markets were hit hard by the invasion and the sanctions that followed Investors are dumping Russian stocks. A sudden and sharp rise in interest rates From the country’s central bank, he helped the ruble plummet.

On Tuesday, the Russian ruble regained more than 6% of its value against the dollar, after dropping nearly 30% on Monday. Market data services showed limited price updates this week, indicating a small number of ongoing transactions. The Russian stock market remained closed, after falling last week.

The

London Stock Exchange

Trading in the shares of Russia’s VTB Bank was suspended after he said

Bank of New York Mellon

He resigned as a trustee of the company.

c. B. Morgan Chase

Two funds were suspended due to the crisis in Ukraine.

Later in the day, investors will see the Institute for Supply Management’s survey of purchasing managers, which is expected to show US factory activity continued to rise in February as the Omicron wave faded.

In the Asia Pacific region, stock markets were mixed. Japan’s Nikkei 225 Index is up 1.2%, while Hong Kong’s Hang Seng Index is up 0.2%.

Write to Will Horner at [email protected]

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