Oil pushed even higher above the $ 100 threshold and Asian stocks were sold on Wednesday after Russia stepped up its attacks on major cities in Ukraine and adopted more aggressive tactics.
The Brent crude, the international index, rose 4.4 percent to a seven-year high of $ 109.59 a barrel in early Asian trade, while the American marker West Texas Intermediate climbed 4.7 percent to $ 108.29.
Recent oil rises, which have left Brent nearly 16 percent higher since Russian President Vladimir Putin began his invasion, came as Russia stepped up its bombing of major Ukrainian cities.
The sanctions imposed on Russia by Western countries have tried to avoid the energy sector, but have nevertheless provoked volatility in global markets in fears of supply disruptions. But U.S. energy group ExxonMobil said Tuesday it would leave Russian oil and gas operations, marking the company’s recent exit in response to the invasion.
Joe Biden also came under increasing pressure to ban Russian oil imports, with both Republicans and Democrats calling on the US president to sever energy ties with the Kremlin. Is “his highest priority.”
“The conflict between Russia and Ukraine is likely to continue to dominate markets for the foreseeable future,” said Robert Kernel, head of Asia-Pacific research at ING. “The announcement yesterday that Russia will not pay coupons to foreign holders on its government debt should push investors even further into safe havens.”
In Asian markets, stocks were sold, leading a 1.7% drop to Japan’s topix index. China’s CSI 300 index of shares traded in Shanghai and Shenzhen fell 1%, while the Hong Kong Hong Kong index fell 0.6%.
The falls came in the wake of sharp declines on Wall Street, where both the S&P 500 and the technology-focused Nasdaq Composite fell 1.6 percent. Futures raised the S&P 500 up 0.1% on Wednesday, while the Euro Stoxx 50 was set to drop 0.1% after ending Tuesday’s session down 2.4%.
In sovereign bond markets US bond yields stabilized after rising on Tuesday as investors sought refuge to reduce stock falls. The 10-year US Treasury yield rose 0.03 percentage points to 1.7565 after falling almost 0.1 percentage point during previous session.
In currencies, the ruble has stabilized at about 108 against the dollar after a punitive course this week that has left it almost 30% lower since the invasion began.
Ukraine war latest: Democrats urge US refineries to stop buying Russian oil Source link Ukraine war latest: Democrats urge US refineries to stop buying Russian oil