World-Business
Average US gas price rises 22% in two weeks to record $4.43
The average U.S. price of regular-grade gasoline shot up a whopping 79 cents over the past two weeks to a record-setting $4.43 per gallon (3.8 liters) as Russia’s invasion of Ukraine is contributing to already-high prices at the pump.
Industry analyst Trilby Lundberg of the Lundberg Survey said Sunday the new price exceeds by 32 cents the prior all-time high of $4.11 set in July 2008. But that’s still quite a ways from the inflation-adjusted record high of about $5.24 per gallon.
Read:Yet another 4-decade inflation high is expected for February
The price at the pump is $1.54 higher than it was a year ago.
Lundberg said gas prices are likely to remain high in the short term as crude oil costs soar amid global supply concerns following Russia’s invasion of Ukraine.
Prices at the pump were rising long before Russia invaded Ukraine as post-lockdown demand has pushed prices higher. Crude prices plummeted in early 2020 as economies around the world shut down because of COVID-19 — the price of futures even turned negative, meaning some sellers were paying buyers to take oil. Prices rebounded, however, as demand recovered faster than producers pulled oil out of the ground and inventories dried up.
Then, the price increase accelerated after war began.
Energy prices are also contributing to the worst inflation that Americans have seen in 40 years, far outpacing higher wages.
Nationwide, the highest average price for regular-grade gas is in the San Francisco Bay Area, at $5.79 per gallon. The lowest average is in Tulsa, Oklahoma, at $3.80 per gallon.
Read:Asia stocks mixed after Wall St falls, US bans Russian oil
According to the survey, the average price of diesel also spiked, up $1.18 over two weeks, to $5.20 a gallon. Diesel costs $2.11 more than it did one year ago.
Sikder Group signs MoU to export shrimps, other products to European market
Sikder Group has signed a Memorandum of Understanding (MoU) with the Private Office of Sheikh Ahmed Bin Faisal Al Qassimi to export shrimps and other commodities to the European market and the UAE- based mega projects.
Ron Haque Sikder, Managing Director of Sikder Group of Bangladesh and Thomasz Zaleski, Chairman of The Private Office of Sheikh Ahmed Bin Faisal Al Qassimi, signed the MoU at the Bangladesh Economic Forum 2022 held at Ballroom MovenPick Grand Hotel Al Bustan Dubai on Thursday.
Read: FBCCI to establish UAE -Bangladesh Joint Council in Dubai
Salman F Rahman, Private Industries and Investment Advisor to Prime Minister Sheikh Hasina, was present on the occasion.
Yet another 4-decade inflation high is expected for February
Consumer inflation in the United States likely set another 40-year high in February — and it won’t even reflect the oil and gas spikes of the past week, which will likely catapult prices even higher in coming months.
Energy prices, which soared after Russia’s invasion of Ukraine on Feb. 24, jumped again this week after President Joe Biden said the United States would bar oil imports from Russia.
A report Thursday from the government is expected to show that consumer inflation leapt 7.9% in February compared with 12 months earlier, according to data provider FactSet. That would be the biggest such increase since January 1982. Analysts have also estimated that prices rose 0.7% from January to February.
Read:Asia stocks mixed after Wall St falls, US bans Russian oil
For most Americans, inflation is running far ahead of the pay raises that many have received in the past year, making it harder for them to afford necessities like food, gas and rent. As a consequence, inflation has become the top political threat to Biden and congressional Democrats as the midterm elections draw closer. Small business people now say in surveys that it’s their primary economic concern, too.
Seeking to stem the inflation surge, the Federal Reserve is set to raise interest rates several times this year beginning with a modest hike next week. The Fed faces a delicate challenge, though: If it tightens credit too aggressively this year, it risks undercutting the economy and perhaps triggering a recession.
For now, solid consumer spending, spurred in part by a further reopening of the economy as omicron fades, on top of higher wages and pricier gas, will likely send inflation higher for months. Gas prices spiked to $4.25 Wednesday, up about 55 cents a gallon just since the end of February.
Oil prices did fall back Wednesday on reports that the United Arab Emirates will urge fellow OPEC members to boost production. U.S. oil was down 12% to $108.70 a barrel, though still up sharply from about $90 before Russia’s invasion.
Yet energy markets have been so volatile that it’s impossible to know if the decline will stick. If Europe were to join the U.S. and the United Kingdom and bar Russian oil imports, analysts estimate that prices could soar as high as $160 a barrel.
The economic consequences of Russia’s war against Ukraine have upended a broad assumption among many economists and at the Fed: That inflation would begin to ease this spring because prices rose so much in March and April of 2021 that comparisons to a year ago would decline.
“Any hope that inflation will peak in the near term is long gone,” said Eric Winograd, senior economist at asset manager AllianceBernstein.
Should gas prices remain near their current levels, Winograd estimates that inflation could reach as high as 9% in March or April.
The cost of wheat, corn, cooking oils and such metals as aluminum and nickel have also soared since the invasion. Ukraine and Russia are leading exporters of those commodities.
Even before Russia’s invasion, inflation was not only rising sharply but also broadening into additional sectors of the economy. Many prices have jumped over the past year because heavy demand has run into short supplies of items like autos, building materials and household goods.
But in other areas unaffected by the pandemic, like rents, costs are also surging at the fastest pace in decades. Steady job growth is encouraging more people to move into their own apartments, elevating rental costs by the most in two decades. Apartment vacancy rates have reached their lowest level since 1984.
In the final three months of last year, wages and salaries jumped 4.5%, the sharpest such increase in at least 20 years. Those pay increases have, in turn, led many companies to raise prices to offset their higher labor costs.
Read:Oil prices jump, shares sink as Ukraine conflict deepens
Soaring energy costs pose a particular challenge for the Fed. Higher gas prices tend to both accelerate inflation and weaken economic growth. That’s because as their paychecks are eroded at the gas pump, consumers typically spend less in other ways.
That pattern is similar to the “stagflation” dynamic that made the economy of the 1970s miserable for many Americans. Most economists, though, say they think the U.S. economy is growing strongly enough that another recession is unlikely, even with higher inflation.
Asia stocks mixed after Wall St falls, US bans Russian oil
European stocks and Wall Street futures rebounded Wednesday as investors watched diplomatic efforts to end Russia's attack on Ukraine, while Asian markets sank after Chinese inflation accelerated.
Already high oil prices added more than $1 per barrel following President Joe Biden's ban on imports of Russian crude.
London and Frankfurt opened higher. Shanghai, Tokyo and Hong Kong declined amid enduring unease about the war's global impact.
Read:Asian shares extend losses as oil prices push higher
Futures for Wall Street's S&P 500 index and Dow Jones Industrial Average were up 1% after the market slid Tuesday.
“Financial markets seem calmer” as Ukrainian and Russian diplomats prepare to meet in Turkey, Chris Turner and Francesco Pesole of ING said in a report. “Yet energy prices look set to stay high as the West weans itself off Russian exports."
In early trading, the FTSE 100 in London jumped 2.1% to 7,107.28. Frankfurt's DAX surged 3.7% to 13,302.51 and CAC 40 in Paris jumped 3.5% to 6,174.29.
On Wall Street, the S&P 500 sank 0.7% on Tuesday for its fourth straight daily decline. It is now 13.1% below its latest record high.
The Dow lost 0.6% and the Nasdaq composite retreated 0.3%. On Monday, it closed 20% below its record high.
In Asia, the Shanghai Composite Index tumbled 1.1% to 3,256.39 after China’s government reported consumer prices rose 0.6% in February over the previous month, picking up from January's 0.4% gain.
The Nikkei 225 in Tokyo slid 0.3% to 24,717.53. The Hang Seng in Hong Kong lost 0.7% to 20,627.71 after being down 2.2% at one point.
“Inflation will pick up” as prices of oil and other commodities rise due to the Ukraine war, Julian Evans-Pritchard of Capital Economics said in a report. That “will have a much more pronounced impact on the March figures.”
Sydney’s S&P-ASX 200 climbed 1% to 7,053.00 and India's Sensex advanced 2.3% to 54.684.42.
New Zealand and Southeast Asian markets rose. South Korean markets were closed for a presidential election.
Benchmark U.S. crude rose $1.86 to $125.56 per barrel in electronic trading on the New York Mercantile Exchange. The contract jumped $4.30 on Tuesday to $123.70.
Brent crude, the basis for international oil prices, gained $2.42 to $130.40 per barrel in London. It advanced $4.77 the previous session to $127.98.
Commodities markets have been roiled because Russia is the No. 2 oil exporter and the No. 3 supplier of nickel, which is used in electric car batteries, stainless steel and other products. Russia and Ukraine also are among the biggest global sellers of wheat.
Read:Oil prices jump, shares sink as Ukraine conflict deepens
Nickel prices doubled Tuesday to more than $100,000 per metric ton, prompting the London Metal Exchange to suspend trading. The exchange said it did not expect to resume trading before Friday and was considering imposing limits on price fluctuations when it does.
A major Chinese producer of nickel and stainless steel, Tsingshan Group, faces potential losses of billions of dollars on futures contracts, The Asian Wall Street Journal and Bloomberg News reported. A woman who answered the phone at Tsingshan's headquarters hung up when told a reporter was calling.
On Tuesday, Biden announced the United States would block imports of Russian crude to punish Putin for attacking Ukraine. Biden said he acted in consultation with European allies but acknowledged they are more dependent on Russian oil and gas and might not be able to make similar moves immediately.
Biden said he hopes to limit the pain for Americans but acknowledged the ban will push up gasoline prices.
“Defending freedom is going to cost us as well,” he said.
Before the invasion of Ukraine, financial markets already were uneasy about the global outlook as the Federal Reserve and other central banks prepare to try to cool inflation by withdrawing ultra-low interest rates and other stimulus.
In currency markets, the dollar advanced to 115.79 yen from Tuesday's 115.74 yen. The euro gained to $1.0951 from $1.0908.
Asian shares extend losses as oil prices push higher
Shares fell in Asia on Tuesday after Wall Street logged its biggest drop in more than a year as markets were jolted by another surge in oil prices.
Benchmarks declined in Tokyo, Sydney, Hong Kong, Seoul and Shanghai following a 3% tumble for the S&P 500.
The surge in the price of oil past $130 per barrel on Monday was triggered by the possibility the U.S. might bar crude imports from Russia. Oil prices steadied later in the day and were moderately higher early Tuesday.
Read:Oil prices jump, shares sink as Ukraine conflict deepens
A third round of peace talks between Ukraine and Russia failed to produce major results. A top Ukrainian official said there was minor, unspecified progress toward establishing safe corridors to allow civilians to escape the fighting.
But Russian forces continued their shelling as food, water, heat and medicine grew increasingly scarce in Ukraine.
Surging prices for oil and other vital commodities are rattling global markets and the situation remains uncertain as investors search for safe havens from expanding sanctions against Russia.
Analysts expect the war in Ukraine to top the agenda for some time to come and say the full impact of the conflict is yet to be fully taken into account.
“Disruptions to energy markets and the possibility of a geopolitical paradigm shift make for a highly unpredictable environment," Stephen Innes of SPI Asset Management said in a commentary. However, he added, “we should reach a point at which equities start to price in a light at the end of the tunnel."
Japan's benchmark Nikkei 225 shed 0.9% to 24,994.98. Australia's S&P/ASX 200 sank 0.2% to 7,023.20. South Korea's Kospi slipped 0.5% to 2,637.61. Hong Kong's Hang Seng lost 0.3% to 20,990.05, while the Shanghai Composite fell 2% to 3,305.83.
On Monday on Wall Street, the S&P 500 fell 122.78 points to 4,201.09. The Dow Jones Industrial Average fell 2.4% to 32,817.38.
The tech-heavy Nasdaq composite slid 3.6% to 12,830.96 and is now 20.1% below its record set in November. That means the index is in what Wall Street calls a bear market. The S&P 500 is down 12.4% from the peak it set in early January.
Gold — a measure of nervousness on Wall Street — also rose, though not by quite as much as when oil prices hit their peak. The price of gold briefly touched $2,007.50 per ounce. Early Tuesday it was at $1,990.00, down 0.3%.
Benchmark U.S. crude advanced $1.76 to $121.16 a barrel in electronic trading on the New York Mercantile Exchange. It settled at $119.40 per barrel on Monday, up 3.2%, after earlier touching $130.50. Brent crude, the international pricing standard, added $2.68 to $125.89 a barrel. It had settled at $123.21 per barrel, up 4.3%, after earlier topping $139.
Worries are growing that Russia’s invasion of Ukraine will upend already tight supplies of oil. Russia is one of the world’s largest energy producers, and oil prices already were high before the attack because the global economy is demanding more fuel following its coronavirus-caused shutdown.
A U.S. ban on imports of Russian oil and other energy products, if taken, would be a major step for the U.S. government, though the White House has said it hopes to limit disruptions to oil markets and limit price jumps at the gasoline pump.
Reports also said U.S. officials may be considering easing sanctions against Venezuela. That potentially could free up more crude oil and ease concerns about reduced supplies from Russia.
A gallon of regular already costs an average of $4.065 across the country after breaching the $4 barrier on Sunday for the first time since 2008. A month ago, a gallon averaged $3.441, according to AAA.
Read:Brent crude up $10, shares sink as Ukraine conflict deepens
The war puts extra pressure on central banks around the world, with the U.S. Federal Reserve on course to raise interest rates later this month for the first time since 2018. Higher rates slow the economy, which hopefully will help rein in high inflation. But if the Fed raises rates too quickly, it risks forcing the economy into a recession.
“Their reaction to geopolitics can't really be measured, so there's uncertainty around that,” said Sameer Samana, senior global market strategist at Wells Fargo Investment Institute.
Beyond sanctions brought on Russia by governments because of its invasion of Ukraine, companies are also levying their own punishments. The list of companies exiting Russia has grown to include Mastercard, Visa and American Express, as well as Netflix.
On Wall Street, shares of Bed Bath & Beyond soared 34.2% to $21.71 after the investment firm of billionaire Ryan Cohen took a nearly 10% stake in the company and recommended big changes. Cohen is the co-founder of Chewy, and he's amassed somewhat of a cult following after he took a stake in GameStop, the struggling video game chain that eventually named him board chairman.
Treasury yields climbed, with the 10-year rising to 1.78% from 1.72% late Friday.
In currency trading, the U.S. dollar rose to 115.43 Japanese yen from 115.32 yen. The euro cost $1.0868, up from $1.0853.
Oil prices jump, shares sink as Ukraine conflict deepens
Oil prices jumped and shares were sharply lower Monday as the conflict in Ukraine deepened amid mounting calls for harsher sanctions against Russia.
Brent crude oil briefly surged above $130 a barrel but was trading around $125 a barrel later Monday. Benchmark U.S. crude also bounced, gaining $10 and then giving up some of that advance.
European markets opened lower and U.S. futures were down 1.7%. The price of gold surged above $2,000 an ounce as investors bought the precious metal viewed as a safe haven in times of crisis.
Russian forces were pummeling some Ukrainian cities with rockets even after Moscow announced another cease-fire and proposed a handful of humanitarian corridors to allow civilians to flee Ukraine starting Monday.
Also read: Asian stocks rise after Fed chair supports smaller rate hike
A similar temporary cease-fire in two Ukrainian cities failed over the weekend — and both sides blamed each other.
U.S. House of Representatives Speaker Nancy Pelosi said the House was exploring legislation to further isolate Russia from the global economy, including banning the import of its oil and energy products into the U.S.
Oil prices came under additional pressure after Libya’s national oil company said an armed group had shut down two crucial oil fields. The move caused the country’s daily oil output to drop by 330,000.
But reports said U.S. officials may be considering easing sanctions against Venezuela. That potentially could free up more crude oil and ease concerns about reduced supplies from Russia.
U.S. crude jumped $6.92 to $122.60 a barrel in electronic trading on the New York Mercantile Exchange. The all-time high was marked in July 2008, when the price per barrel of U.S. crude climbed to $145.29.
That pushed the average price for gasoline in the U.S. above $4 a gallon, a milestone already reached again. The price of regular gasoline rose almost 41 cents, breaking $4 per gallon (3.8 liters) on average across the U.S. on Sunday for the first time since 2008, according to the AAA motor club.
Brent crude, the international pricing standard, hit $139.13 per barrel before falling back Monday. It was trading up $6.57 at $124.68 a barrel in London.
In early European trading, France’s CAC 40 dipped 3% to 5,879.70, while Germany’s DAX lost 3.2% to 12,675.43. Britain’s FTSE 100 dropped 1.4% to 6,890.71. U.S. shares were set to start the week lower, with the futures for both the Dow Jones Industrial Average and the S&P 500 down 1.8%.
Higher fuel costs are devastating for Japan, which imports almost all its energy. Japan’s benchmark Nikkei 225 lost 2.9% to 25,221.41.
Also read: Ruble dives, stocks sink as West tightens Russia sanctions
Hong Kong’s Hang Seng dropped 3.9% to 21,057.63, while South Korea’s Kospi slipped 2.3% to 2,651.31. Australia’s S&P/ASX 200 shed 1.0% to 7,038.60. while the Shanghai Composite lost 2.2% to 3,372.86.
“The Ukraine-Russia conflict will continue to dominate market sentiments and no signs of conflict resolution thus far may likely put a cap on risk sentiments into the new week,” said Yeap Jun Rong, market strategist at IG in Singapore.
“It should be clear by now that economic sanctions will not deter any aggression from the Russians, but will serve more as a punitive measure at the expense of implication on global economic growth. Elevated oil prices may pose a threat to firms’ margins and consumer spending outlook,” Yeap said.
China reported Monday that its exports rose by double digits in January and February before Russia’s attack on Ukraine roiled the global economy.
Customs data show exports grew by 16.3% over a year earlier in a sign global demand was recovering before President Vladimir Putin’s Feb. 24 invasion. Imports advanced 15.5% despite a Chinese economic slowdown that the war threatens to worsen.
China’s No. 2 leader, Premier Li Keqiang, warned Saturday global conditions are “volatile, grave and uncertain” and achieving Beijing’s economic goals will require “arduous efforts.”
Markets worldwide have swung wildly recently on worries about how high prices for oil, wheat and other commodities produced in the region will go because of Russia’s invasion, inflaming the world’s already high inflation.
The list of companies exiting Russia has grown to include Mastercard, Visa and American Express, as well as Netflix.
The conflict in Ukraine also threatens the food supply in some regions, including Europe, Africa and Asia, which rely on the vast, fertile farmlands of the Black Sea region, known as the “breadbasket of the world.”
Wall Street finished last week with shares falling despite a much stronger report on U.S. jobs than economists expected. The S&P 500 fell 0.8% to 4,328.87, posting its third weekly loss in the last four. It is now down just under 10% from its record set early this year.
In currency trading, the U.S. dollar edged up to 115.08 Japanese yen from 114.86 yen. The euro cost $1.0830, down from $1.0926.
Trade through Benapole land port resumes after 2 days
Export-import activities between Bangladesh and India through Benapole land port resumed on Monday after two days of suspension following a strike called by several port users’ organizations.
The protesters withdrew their indefinite strike, which was enforced on Saturday, after a fruitful meeting with the customs authorities.
The workers of five port users’ organisations joined their work around 9 am on Monday.
Read: 2 killed in separate city road accidents
On March 2, customs officials seized huge Indian contraband goods including phensidyl, explosives, cigarette, current nets, and cloths worth Tk 50 lakh from two Indian trucks.
They also suspended the liscenses of two organizations including Shimul Trading Agency and IDS Group. A complaint was lodged with Benapole port in this connection.
Protesting the customs officials’ move, five port users’ organisations went on an indefinite strike from Saturday and threatened to continue it until restoration of licenses of two C&F agents.
Enamul Haque Lata, general secretary of Benapole C&F Agent Association, said the customs authorities assured us of meeting our demands within one week.
Asian stocks rise after Fed chair supports smaller rate hike
Asian stock markets rebounded Thursday and oil prices climbed higher after the head of the Federal Reserve said he supports a smaller rise in interest rates than some expected.
Shanghai, Tokyo, Hong Kong and Sydney advanced even as Russian forces whose attack on Ukraine has roiled financial markets bombarded the country's second-largest city and besieged two ports.
Wall Street's benchmark S&P 500 index rose 1.9% on Wednesday, recovering this week's losses after Fed Chair Jerome Powell said the U.S. central bank is set to raise its key interest rate for the first time since 2018. He said he supports a traditional rate hike of 0.25 percentage points instead of the bigger rise recommended by some policymakers.
Read: Ruble dives, stocks sink as West tightens Russia sanctions
Powell said the impact on the U.S. economy of Russia's attack is “highly uncertain.”
“Markets have reacted positively to the remarks, which is a debatable interpretation of Powell’s nuanced comments,” ING economists said in a report. “Volatility is the key here, and uncertainty. This isn’t going to go away any time soon.”
The Nikkei 225 in Tokyo rose 0.8% to 26,608.21 and the Hang Seng in Hong Kong gained 0.6% to 22,469.66. The Shanghai Composite Index advanced 0.1% to 3,487.78.
The Kospi in Seoul added 1.6% to 2,745.45 and Sydney's S&P-ASX 200 was 0.8% higher at 7,171.10. New Zealand and Southeast Asian markets also advanced.
Share prices have swung widely as investors try to figure out how the Russian attack will affect supplies of oil, wheat and other commodities and the global recovery from the coronavirus pandemic.
Traders already were uneasy about plans by the Fed and other central banks to fight inflation by withdrawing ultra-low interest rates that boosted stock markets.
The S&P 500 rose to 4,386.54. The Dow Jones Industrial Average gained 1.8% to 33,891.35. The Nasdaq composite advanced 1.6% to 13,752.02.
More than 90% of stocks in the S&P 500 rose. Tech, finance and health care companies accounted for a big share of the rally. Energy stocks also helped lift the index as they rode higher oil prices.
Ford Motor Co. jumped 8.4% after it said it was accelerating its transformation into an electric-vehicle company and separated its EV and internal combustion operations.
The yield on the 10-year Treasury bond, or the difference between its market price and the payout at maturity, rose to 1.89% from Tuesday's 1.72%. However, yields still were below where they were before Russia's invasion.
In energy markets, benchmark U.S. crude rose another $2.68 to $113.28 per barrel in electronic trading on the New York Mercantile Exchange. Brent crude, the price basis for international oils, added $3.61 to $116.54 per barrel in London.
Both gains were smaller than Wednesday's surge of more than $7 per barrel but still unusually wide margins for a daily change.
Leaders of OPEC and other major oil exporters decided Wednesday to stick to plans to gradually increase production. The coalition, made up of OPEC members led by Saudi Arabia and non-cartel members led by Russia, chose to increase production by 400,000 barrels per day in April.
Read:Stocks slump, oil surges over Ukraine conflict
Also this week, the United States and other major oil consumers in the International Energy Agency agreed to release 60 million barrels from strategic reserves to boost supplies. But that has had little impact on market prices.
In currency markets, Russia's ruble gained 3.4% against the U.S. dollar but still was near a record low value of less than 1 cent. It has fallen nearly 25% since the attack after Western governments imposed sanctions that cut off much of Russia's access to the global financial system.
The dollar gained to 115.63 yen from Wednesday's 115.58 yen. The euro declined to $1.1097 from $1.1126.
Ruble dives, stocks sink as West tightens Russia sanctions
The ruble plunged to a record low of less than 1 U.S. cent and most global stock markets declined Monday after Western nations moved to block some Russian banks from a global payments system.
Russia’s invasion of Ukraine has caused markets to swing wildly, given the potential impact on inflation, energy supplies and other economic repercussions.
Putin's order that Russian nuclear weapons stand at increased readiness to launch ratcheted up tensions with Europe and the United States and revived dormant fears from the Cold War era.
The Russian central bank raised its key rate to 20% from 9.5% in a desperate attempt to shore up the plummeting ruble and prevent a run on banks. That brought a temporary reprieve for the Russian currency, which bounced back to the level it was at last week, but only briefly.
Also read: Asian shares, US futures fall as Ukraine conflict deepens
The ruble has plunged more than 30% after the move to block Russian banks from the SWIFT payments system. The sanctions include restrictions meant to crimp the Russian central bank’s access to over $600 billion in reserves and hinder its ability to support the ruble.
A weaker ruble is expected to cause inflation to surge, potentially angering Russians whose budgets will be stretched by soaring prices. It will also add to strains across Russia's financial systems.
Germany's DAX fell 2.1% to 14,263.95 and the CAC 40 in Paris lost 2.3% to 6,595.83. Britain's FTSE 100 shed 1.7% to 7,365.29.
In New York, the future for the S&P 500 was 1.6% lower and that for the Dow industrials declined 1.3%.
Also read: World shares up, US futures sink as Russia moves toward Kyiv
On Friday, the S&P 500 climbed 2.2%, notching its first weekly gain in three weeks. The Dow Jones Industrial Average rose 2.5% and the Nasdaq composite gained 1.6%. The Russell 2000 index rose 2.3%.
The end of the month usually brings a raft of economic data, but for now the conflict is eclipsing other issues.
“It’s all about the Russia-Ukraine situation and evolutions in that situation will drive market sentiment and direction,” Jeffrey Halley of Oanda said in a commentary.
“President Putin will now have to accept that the ‘Western’ powers are prepared to accept quite a bit of economic pain now to punish Russia,” he said.
Markets in Asia appeared to take the latest developments more calmly.
Japan's Nikkei 225 index recovered from earlier losses to edge 0.2% higher to 26,526.82. The Hang Seng in Hong Kong lost 0.2% to 22,713.02. The Shanghai Composite index gained 0.3% to 3,462.31. The Kospi in Seoul climbed 0.8% to 2,699.18, while in Sydney the S&P/ASX 200 gained 0.7% to 7,049.10.
Although Asia is unlikely to suffer direct damage from the war in Ukraine, higher energy prices are an unwelcome burden for oil-importing nations like Japan, especially while they are still struggling to recover from the pandemic.
Underscoring deepening rifts due to the conflict, BP said Sunday it was exiting its 19.75% share in Rosneft, a state-controlled Russian oil and gas company, which it has held since 2013. That stake is currently valued at $14 billion.
Oil prices surged Monday, with U.S. benchmark crude up $4.33, or 4.7%, at $95.92 per barrel in electronic trading on the New York Mercantile Exchange. It lost $1.22 to 91.59 per barrel on Friday.
Brent crude gained $4.20 to $98.32 per barrel, up 4.5% and approaching the $100 per barrel level it breached last week.
The Ukraine conflict has heaped uncertainty atop other worries over interest rates and inflation.
The U.S. Federal Reserve has suggested it will raise short-term interest rates next month by double its usual increase, the first rate increase since 2018. Higher U.S. rates tend to put downward pressure on all kinds of investments, and can have global repercussions.
In currency trading, the U.S. dollar inched down to 115.61 Japanese yen from 115.77 yen. The euro rose to $1.1165 from $1.1157.
Asian shares, US futures fall as Ukraine conflict deepens
Asian shares slipped Monday after Western nations moved to tighten sanctions against Russia and President Vladimir Putin escalated tensions by ordering Russian nuclear forces be put on high alert.
U.S. futures fell, with the contract for the S&P 500 down 2.5% and that for the Dow industrials 1.6% lower.
Tokyo, Hong Kong and Shanghai declined while Sydney was higher.
Read:Putin puts nuclear forces on high alert, escalating tensions
Russian’s invasion of Ukraine has caused markets to swing wildly, given the potential impact on inflation, energy supplies and other repercussions.
The end of the month usually brings a raft of economic data, but for now the conflict is eclipsing other issues.
“It’s all about the Russia-Ukraine situation and evolutions in that situation will drive market sentiment and direction," Jeffrey Halley of Oanda said in a commentary.
“President Putin will now have to accept that the ‘Western' powers are prepared to accept quite a bit of economic pain now to punish Russia," he said.
The Russian ruble has weakened sharply in the past week but was steady early Monday at 83.86 to the dollar.
Putin ordered Russian nuclear weapons prepared for increased readiness to launch on Sunday ratcheting up tensions with Europe and the United States in a move that unearthed dormant fears from the Cold War era.
Japan joined moves by the U.S. and other western nations to impose sanctions against Russia, including blocking some Russian banks from the SWIFT global payment system.
The central bank restrictions target access to the more than $600 billion in reserves that the Kremlin has at its disposal, and are meant to block Russia’s ability to support the ruble as it plunges in value.
Sanctions announced earlier have taken its currency to its lowest level against the dollar in history and gave its stock market its worst week on record.
Japan's Nikkei 225 index lost 0.4% to 26,366.60 and the Hang Seng in Hong Kong lost 1.4% to 22,445.66. The Shanghai Composite index was 0.1% lower at 3,446.44. The Kospi in Seoul was nearly unchanged at 2,678.17, while in Sydney the S&P/ASX 200 gained 0.4% to 7,023.70.
Although Asia is unlikely to suffer direct damage from the war in Ukraine, higher energy prices are an unwelcome burden for oil-importing nations like Japan, especially while they are still struggling to recover from the pandemic.
Underscoring the deepening rifts due to the conflict, BP said Sunday it was exiting its 19.75% share in Rosneft, a state-controlled Russian oil and gas company, which it has held since 2013. That stake is currently valued at $14 billion.
Read:Ukraine, Russia diplomats to meet on Belarus border
Oil prices surged Monday, with U.S. benchmark crude up $4.95, or 5.4%, at $96.54 per barrel.
Brent crude gained $4.68 to $98.80 per barrel, up 4.9% and approaching the $100 per barrel level it breached last week.
On Friday, the S&P 500 climbed 2.2%, notching its first weekly gain in three weeks to close at 4,384.65. The Dow Jones Industrial Average rose 2.5% to 34,058.75. The Nasdaq composite gained 1.6% to 13,694.62 after swinging between modest gains and losses. The Russell 2000 index rose 2.3%, to 2,040.923.
The Ukraine conflict has heaped uncertainty atop other worries over interest rates and inflation.
The U.S. Federal Reserve has suggested it will raise short-term interest rates next month by double its usual increase, the first rate increase since 2018. Higher U.S. rates tend to put downward pressure on all kinds of investments, and can have global repercussions.
In currency trading, the U.S. dollar inched down to 115.46 Japanese yen from 115.77 yen. The euro was barely changed, at $1.1155, down from $1.1157.