Global stock markets fall and oil rises as Ukraine’s crisis worsens
Asia-Pacific stocks fell after Russian President Vladimir Putin recognized the two secession areas of eastern Ukraine as “independent.” The Russian ruble hit a low for the first time in 18 months, and Brent crude oil hit a high for the first time in seven years.
US National Security Adviser Jake Sullivan warned last week that the invasion could begin “immediately” and “a large barrage of missile and bomb attacks.” (AFP)
While Russian President Vladimir Putin ordered troops to be sent to secession areas in eastern Ukraine, the eastern side of Europe stood on the brink of war, restoring safe havens and boosting oil. World stocks have plummeted.
MSCI’s widest non-Japanese Asia Pacific stock index fell 2.1% on Tuesday’s worst day of the month, squeezed by markets in Hong Kong and mainland China.
The Nikkei Stock Average in Japan fell 2.5%.
US and European markets also plunged as S & P 500 futures fell 1.8%, Nasdaq futures fell 2.5%, Eurostocks 50 futures in the pan-region fell 1.53% and FTSE futures fell 0.89%. I prepared. Cent.
In contrast, Brent crude oil futures rose 1.5% after hitting a new seven-year high of $ 97.21 early in the session on concerns that Russia’s energy exports could be disrupted. It is now $ 96.85. Spot gold rose 0.2% to $ 1,909.10, reaching a six-month high of $ 1,911.56.
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Putin recognized the two secession areas of eastern Ukraine as independent on Monday, ordering Russian troops to start what Moscow calls peacekeeping operations in the area, which could unleash a major war. Raised the precursors of the crisis.
Earlier on Tuesday, Reuters witnesses saw a line of military vehicles, including tanks, in the suburbs of Donetsk, the capital of one of the two secession areas.
Putin signed a treaty with two secessionist Donetsk and Luhansk leaders An area that gives Russia the right to build a military base.
Washington and the European capital have condemned the move and vowed new sanctions. The Ukrainian Foreign Minister said the “resolute and unified” response from the European Union was guaranteed.
However, officials from the Biden administration said Russia’s move was not a deviation from what Russia had already done and therefore did not yet constitute a “more invasion” that would trigger a broader sanctions package.
Following Russia’s recent move, UBP’s senior Asian economist Carlos Casanova said, “We are very close to military intervention and, of course, will eliminate many risks from market sentiment.” .. It was “relentless” due to both geopolitical factors and the US Federal Reserve.
read more:The world reacts to Russia’s declaration of the Ukrainian region as an “independent” nation
Casanova said the result would be rising oil prices, the sale of stocks, and people flocking to safe assets like the Japanese yen.
In Hong Kong, Russian aluminum producer OK Rusal’s share price plummeted by 22.1% to HK $ 6.18, the largest daily decline since April 2018.
China’s tech stocks listed on Hong Kong fell 2.7% as they haven’t helped the Hong Kong market away from Russia.
Currency goes pretty
In the currency markets, movements were more modest and stable, with the exception of the Russian ruble, which hit a low for the first time in 18 months in early Asian trading.
The Japanese yen has receded to a high of nearly three weeks at $ 114.50 / dollar. The Swiss franc has been stable near the previous month’s highs and the euro has fallen 0.2%. Weekly lows of $ 1.1286,
“The currency market doesn’t really show the same level of attention as the stock market,” said Matt Simpson, senior market analyst at Citi Index.
“If you read the headline, you can expect to see some follow-through in the market. We are stocks, but not currencies,” he said.
“Interestingly, the Swiss franc was a safe haven overnight, not the Japanese yen.”
Nervousness also lowered US Treasury yields, with benchmark 10-year Treasury yields plummeting by 7 basis points to 1.846 percent. Bets on the Federal Reserve’s rate hike have also eased, and the chances of raising 50 basis points next month are less than one-fifth.
US policymakers have publicly sparred on how to aggressively initiate tightening.
Federal Reserve Governor Michel Bowman said Monday that he would evaluate economic data over the next three weeks in deciding whether a 0.5 percent point hike is needed at the next meeting of the central bank in March.
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Source: TRT World and distributors
https://www.trtworld.com/business/global-stock-markets-tumble-oil-rises-as-ukraine-crisis-worsens-54996?utm_source=other&utm_medium=rss Global stock markets fall and oil rises as Ukraine’s crisis worsens
