As Europe’s east teetered on the brink of war after Russian President Vladimir Putin sent troops to breakaway areas in eastern Ukraine, oil surged to seven-year highs, safe havens rallied, and US Stock futures fell on Tuesday. Brent crude futures climbed him 1.6% to $96.94, just below his seven-year high last night. S&P 500 futures fell 1.5% and Nasdaq futures fell his 2.2%. Asian stocks also fell more than half a percent, with Japan’s Nikkei plummeting.
Reuters witnesses saw a line of military vehicles, including tanks, on the outskirts of Donetsk, the capital of one of his two segregated regions. Washington and European capitals condemned the move and promised new sanctions.Ukraine’s foreign minister said he was confident of a “resolute and coherent” response from the European Union. However, it was not immediately clear whether the West would see Russia’s military action as the beginning of a full-scale aggression.
The Russian ruble briefly touched his 18-month low in Asian trading on Tuesday after Russia’s MOEX stock index fell his 10.5% the day before. Meanwhile, spot gold hit a six-month high at $1,911.56. Putin on Monday recognized two separate regions in eastern Ukraine as independent and called for Moscow to launch what it called peacekeeping operations in the region in preparation for a crisis that could provoke a large-scale war ordered the Russian army.
We are very close to intervention and, of course, much of the market’s risk aversion will wane,” he said, citing both geopolitical factors and the “relentless” impact of the US Federal Reserve. Casanova said that would result in rising oil prices, plummeting stocks and people rushing to safe haven assets like the yen. MSCI’s broadest index of Asia-Pacific stocks outside Japan fell 0.66% in early trading on Tuesday, while Japan’s Nikkei fell 1.6%. In the FX market, the Asian safe-haven yen rose as much as 0.2% to reach a three-week high of 114.50 yen to the dollar before reversing its gains.
Federal Reserve Governor Michelle Bowman said on Monday that she will look at incoming economic data over the next three weeks to determine whether a 0.5 percentage point rate hike is needed at the next central bank meeting in March. said to evaluate.
The euro fell 0.1% to a weekly low of $1.1296. Ray Attrill, Head of FX Strategy at NAB, said: Anxiety has also driven US Treasury yields lower, with his benchmark 10-year yield dropping as much as 5.5 basis points to his 1.8715%. Expectations for a rate hike by the US Federal Reserve (Fed) have also eased, giving him less than a 1 in 5 chance of a 50 basis point rate hike next month. US policymakers are publicly arguing over how aggressively to start tightening.
- While Russia orders soldiers to Ukraine regions, stocks decline and oil prices rise
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