LONDON, March 9 (Reuters) – European stock markets plunged in early trade on Wednesday after a three-day slump as crude oil prices rose following a US embargo on Russia’s oil imports.
Western sanctions have cut Russia off from world trade and financial markets in response to Russia’s invasion of Ukraine, and oil prices have risen only after the US embargo, Goldman Sachs analysts say, have already set prices. read more
At 0815 GMT, Brent crude futures were up $ 128.89 a barrel, up 0.6% on the day. Although it was below Monday’s high of $ 139.13, it’s roughly double the December low.
Sign up now for unlimited free access to Reuters.com
Britain has said it will stop importing Russian oil and oil products by the end of 2022, while the European Union has announced plans to reduce its reliance on Russian gas by two-thirds this year. Europe is more dependent on Russian oil than the United States. read more
Russia has said it is acting in broad response to sanctions that are quick and tangible in the most sensitive parts of the West. read more
Marcelo Assalin, president of William Blair IM’s Emerging Market Credit, asked key questions for investors: what if further military expansion occurs; Will Moscow restrict its gas exports if countries like Germany join the embargo on oil purchases; How rising energy prices will affect the global economy; And how the major central banks operate.
Central banks will tighten monetary policy “less than they did”, Assalin said.
MSCI Global Equity Code (.MIWD00000PUS)Shares in 50 countries traded up 0.5% on the day.
European indices STOXX 600 opened higher, up 2.4% (.STOXX) And London’s FTSE 100 rose 1.6% (.FTSE).
With markets volatile, analysts say a slight recovery in stocks does not mean that investors have changed their view of the conflict, the biggest war in Europe since World War II. read more
Chinese stocks continued to struggle with inflation data, which showed a combination of mild domestic demand and higher commodity prices, while corona virus cases continued to rise. read more
The Russian invasion and subsequent sanctions wreaked havoc with global supply chains, and commodity prices soared across the market. read more
UBS said in a client note that it had raised expectations for its products.
“The world commodity market has already … faced a supply challenge before the conflict.
Following the suspension of nickel trading on the London Metals Exchange, prices doubled due to top-manufacturer short-covering. read more
Gold fell from a 19-month high of the previous session.
The safe haven dollar was down 0.4% at 98.726, against a basket of currencies.
Benchmark 10-year German government bond yields calmed down after Tuesday’s gains, up 0.118% on a daily basis.
10-year U.S. Treasury revenue remained stable at 1.8663%.
Elsewhere, Bitcoin held a rally in cryptocurrencies following a pre-published report on calls for an “integrated and comprehensive approach to digital property policy,” which briefly appeared on the U.S. Treasury website, allaying fears of a sudden tightening of U.S. rules around such assets. read more
Sign up now for unlimited free access to Reuters.com
Report by Elizabeth Howcraft; Additional Report by Mark Jones; Editing by John Stone Street
Our standards: Thomson Reuters Trust Principles.
“Communicator. Music aficionado. Certified bacon trailblazer. Travel advocate. Subtly charming social media fanatic.”
More Stories
Adani returns from China New Year, CSI 300, New Zealand trade
Bengals vs. Chiefs live updates: KC leads 10 in AFC title game
LeBron James, Lakers get robbed in Boston, but that’s set up (once again) by Darwin Hamm’s late game practice