Global stocks fell in Asian markets on Thursday. Dollar, gold and oil prices soared, and US government bond yields fell amid growing fears of a full-scale Russian invasion. Ukraine.
As one of Europe’s worst post-Cold War security crises has worsened in decades, oil prices have risen more than $ 1 on Thursday morning as Russiathe invasion of Ukraine began.
Brent crude rose nearly $ 4, or 3.93 percent, to $ 107.57 a barrel after rising to $ 98.08.
Western United States Texas Crude intermediate futures also jumped 85 cents, or 0.9 percent, to $ 92.95 a barrel after rising to $ 93.50.
Oil rose to more than $ 100 a barrel for the first time since 2014 on Thursday morning when Russia moved troops to Ukraine
Japan’s Nikkei index fell to its 15-month low on Thursday after Russian President Vladimir Putin authorized a military operation in eastern Ukraine
A case wearing a face mask passes an electric screen showing a graph showing the average share of Japan’s Nikkei as shares fell after Russia’s invasion of Ukraine
Russia is the world’s second-largest oil producer, which mainly sells crude oil to European refineries, and is Europe’s largest supplier of natural gas, accounting for about 35% of supplies.
Over the night, US stocks fell, with the Dow Jones Industrial Average falling 1.38% to just above the level that would confirm a correction. The MSCI global index, the world’s leading measure of stock markets, fell to its lowest level since April 2021.
In Asia on Thursday, the sale showed no signs of weight loss.
MSCI’s broadest index for Asia-Pacific stocks outside Japan fell 1.6 percent in morning trading, with Australian stocks falling nearly 3 percent at one point. In Tokyo, the Nikkei was 1.1% lower. Chinese blue chips fell 0.6%.
S&P 500 futures looked 2% lower on Thursday morning
Passers-by wearing face masks walk past a stock exchange in Tokyo, Japan on Thursday
“Markets believe Russia will now do as it pleases, given how weak the sanctions have been and are pricing the invasion,” said Ray Atril, head of currency strategy at National Australia Bank.
“The real concern is that Europe has been cut off from Russian gas. The EU cannot cope with such a supply shock and will have to control demand, which would be economically exhausting, “he added. “Higher energy prices are also the place where rubber is on the road in terms of global economic growth, which must be bad for risk sentiment.”
The Russian ruble fell 0.1 percent against the dollar after falling more than 3 percent on Wednesday.
“Markets are already pricing more adequately at the risk of something terrible happening. This, combined with insecurity, is a terrible living environment. No one wants to be put at risk when it’s around, “said Rob Carnell, head of research at ING’s Asia-Pacific region.
Russian President Vladimir Putin declared war on Ukraine and issued a chilling warning to his allies in the west early Thursday morning.
Airlines have been told to suspend flights over any part of Ukraine due to the risk of unintentional landings or cyberattacks aimed at controlling air traffic amid tensions with Russia, an observer at the conflict zone said.
The warning was followed by a notice to the pilots that the flights of civil aircraft in Ukrainian airspace were “restricted due to potential danger to civil aviation”.
In addition to tensions, hundreds of computers in Ukraine have been affected by data erasure software as part of what state officials said was a growing wave of hacks targeting the country as Russia amassed troops around its borders.
“After yesterday’s lull, when the Russia-Ukraine situation fell out of the headlines, its inevitable resumption overnight sparked a flight to safety again and raised oil due to fears of disruption of global energy supplies,” said Jeffrey Halley, senior market analyst. in OANDA.
“One factor that could act as a temporary price deterrent is Iran’s nuclear deal, with rumors that a new deal could be announced, probably as early as this week,” he added. “However, Ukraine fears, and their wider implications, will continue to support oil prices, which remain a solid purchase in downturns.”
An explosion was observed in the early hours of Thursday in the Ukrainian city of Kharkiv
The United States and Iran have been involved in indirect nuclear talks in Vienna, in which the deal could lead to the lifting of sanctions on Iranian oil sales and an increase in global supplies.
In addition, crude oil inventories in the United States rose 6 million barrels last week, while distillate inventories fell, according to market sources, citing data from the American Petroleum Institute late Tuesday.
Ahead of government data on Thursday, analysts forecast an increase in crude oil of 400,000 barrels and a reduction in fuel stocks.
Gasoline inventories increased by 427,000 barrels and distillate inventories decreased by 985,000 barrels, according to API data, according to sources who requested anonymity.