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As the war with Ukraine intensifies, oil prices skyrocket above $ 100 a barrel.jobs

New York (AP) —Russia intensified its war with Ukraine, soaring oil prices and investors shifting more money to ultra-safe US Treasuries. Oil prices soared above $ 100 a barrel after Russia, a major energy producer, faced further isolation and economic damage from the invasion of Ukraine. With the rush into bonds, yields on 10-year government bonds returned to 1.77% in early February. Stock prices were mixed early on Wall Street. The S & P 500 went back and forth between small profits and losses in the first few minutes of trading. The European market was low.

This is the latest news update. The previous story of AP is as follows.

New York (AP) — US markets were heading down on Tuesday after negotiations between Russia and Ukraine aimed at ending the war only brought an agreement to meet again.

On Wall Street, both S & P 500 and Dow Jones Industrial Average futures fell 0.7%. Europe’s major indices plummeted, but Asia’s share was mostly high. Crude oil prices continue to rise, with US benchmark crude oil surpassing $ 100 for the first time since the summer of 2014.

A 40-mile convoy of Russian tanks As the Kremlin became more and more isolated, it threatened Kyiv, the capital of Ukraine, on the sixth day of the war.

Embarrassed Ukrainian President Volodymyr Zelensky believed that the intensification of bombardment by Russian troops was designed to concede him, but the first five-hour talks agreed to another meeting within a few days. It ended with.

Russia is a major energy producer, and soaring oil prices and rising financial pressure from US and Russian allies to invade Ukraine have increased uncertainty about the outlook for the global economy.

“The ceasefire negotiations at the Belarus-Ukraine border have ended, but in addition to further sanctions, the military fire has never ended,” said Tan Boon Heng of Mizuho Bank of Singapore. Stated.

France’s CAC 40 lost 3% and Germany’s DAX lost 2.7%. The UK FTSE 100 fell 1.3%.

Japan’s benchmark Nikkei 225 rose 1.2% to close at 26,844.72. Australia’s S & P / ASX 200 surged 0.7% to 7,096.50. Hong Kong’s Hang Seng Index rose 0.2% to 22,761.71, and the Shanghai Composite Index rose nearly 0.8% to 3,488.83. The market was closed in South Korea due to a holiday.

“The market focus will continue to focus on geopolitical tensions, at least in the short term,” Anderson Alves of ActivTrades said in a report.

The value of the Russian ruble plunges It hit record lows on Monday after Western countries moved to block some Russian banks from major global payment systems. Also on Monday, the US Treasury announced further sanctions on the Central Bank of Russia.

The ruble was trading at $ 97 on Tuesday. This is more than 10% higher than the lowest of 108.02 per dollar the day before. The Russian market closed at the beginning of Monday and then remained closed on Tuesday.

Governor and members of the Diet Many US states, In an attempt to add to Russia’s financial pressure, it has taken steps to withdraw state pensions and financial funds from investments in Russian-owned entities or Russian companies that support the war.

Various companies have announced plans to reduce or withdraw their operations in Russia, or to suspend operations in Ukraine due to conflict.

Investors were already at stake before Russia’s invasion in anticipation of a Federal Reserve plan to raise interest rates for the first time since 2018 to combat inflation.

The Federal Reserve is walking a tightrope and needs to raise interest rates enough to curb inflation, but not enough to put the economy in recession. Higher rates also put downward pressure on various investments, from equities to cryptocurrencies.

The war in Ukraine raises expectations that the Fed and other central banks may have to adopt a milder interest rate hike approach than previously expected.

Investors have invested in US Treasuries in search of safer returns. The Treasury yield for 10 years fell 0.15 percentage points to 1.83 percent on Monday. This is the biggest decline since the Omicron coronavirus variant first upset investors.

The Treasury for 10 years was 1.73% at the beginning of Tuesday.

Federal Reserve Chair Jerome Powell will testify in Congress later this week and may provide clues for the future. Friday’s report also shows whether the strength of the US employment market continued in February, allowing the Fed to increase room for rate hikes.

In energy trading, benchmark US crude increased by $ 100.21 from $ 4.69 a barrel in electronic trading on the New York Mercantile Exchange. It jumped from $ 4.13 to $ 95.72 on Monday.

Brent crude, the international standard, rose $ 5.17 per barrel to $ 103.04. Oil prices on both sides of the Atlantic are skyrocketing in concerns about what will happen to crude oil supplies.

In currency transactions, the US dollar fell from 114.99 yen to 114.76 yen. The euro fell from $ 1.1219 to $ 1.1174.

Copyright 2022 AP communication. all rights reserved. This material may not be published, broadcast, rewritten, or redistributed without permission.



As the war with Ukraine intensifies, oil prices skyrocket above $ 100 a barrel.jobs

Source link As the war with Ukraine intensifies, oil prices skyrocket above $ 100 a barrel.jobs

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