Russian move in eastern Ukraine triggers oil jump, stocks fall

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With crisis deepening after latest Russian move in eastern Ukraine, oil jumped to a seven-year high on Tuesday. US stock futures have also nosedived.  

This comes as Russian President Vladimir Putin signed decrees to recognise the ‘Donetsk and Luhansk People’s Republics’ as ‘independent’. Moscow has also sent troops to these regions.      

Also Read: Ukrainian President Volodymyr Zelenskiy addresses nation, rejects making any territorial concessions

Brent crude futures rose around 4% to $97.35. It is the highest rise since September 2014. While S&P 500 futures fell 2% and Nasdaq futures dived 2.7%.  

European equities also dropped 1.3% overnight to a four-month low. The Russian rouble tanked and Russia’s MOEX equity index fell by 10.5%. Australia’s ASX 200 also followed suit and fell 1.3% in early trade. On Monday, markets in the US were closed for a holiday.  

Ray Attrill, NAB head of foreign exchange strategy, said, “In these circumstances, risk metrics are the driving force.”  

Also Read: UN chief Guterres calls Russian move a ‘violation’ of Ukraine’s sovereignty

In the currency trade, the yen hiked by 0.2% in Asia to a nearly three-week high of 114.50 per dollar. The euro nosedived around 0.1% to a one-week low of $1.1296. The Russian rouble also touched a one-month low of 80.289 per dollar.   

The tensions also drove US Treasury yields lower, with benchmark 10-year Treasury yields down 5.5 basis points (bp) to 1.8715%.   

(With inputs from agencies) 

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