Breaking News
Get Actionable Insights with InvestingPro+: Start 7 Day FREE Trial Register here
Investing Pro 0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

Oil soars, stocks fall as Russia, Ukraine fears intensify

Stock Markets Feb 22, 2022 04:51PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
2/2 © Reuters. FILE PHOTO: Monitors displaying the stock index prices and Japanese yen exchange rate against the U.S. dollar are seen after the New Year ceremony marking the opening of trading in 2022 at the Tokyo Stock Exchange (TSE), amid the coronavirus disease (COVI 2/2

By Sinéad Carew

NEW YORK (Reuters) -Crude oil futures on Tuesday reached their highest levels since 2014 on supply concerns and stocks sold off in a volatile session as investors eyed international responses after Russia sent troops into parts of Ukraine.

Markets were jittery a day after Russia's move but the safe-haven U.S. dollar was slightly lower against major currencies while gold, another safety bet, was also in the red.

U.S. President Joe Biden announced the first sanctions against Russia for what he called Moscow's beginning of an invasion of Ukraine, and he promised steeper punishments ahead if Russia continued its aggression.

While the S&P 500 confirmed it is in a correction by closing more than 10% under its record high, it still finished above its session low, reached before Biden spoke. [.N]

"When Biden came out and set sanctions they weren't maybe as severe as people were fearing," said Robert Pavlik, senior portfolio manager at Dakota Wealth in Fairfield, Connecticut.

And while investors were jittery, Pavlik said that "people are trying to sit with what they own if they've adjusted their portfolio ahead of all this. For those that haven't, it's a little late in the game."

The European Union also agreed on new sanctions against Russia on Tuesday while German Chancellor Olaf Scholz halted the new Nord Stream 2 gas pipeline from Russia and Britain took action against Russian banks.

"The world is still hoping this is somewhat limited and doesn't really spread across Europe and Ukraine," said Peter Tuz, president of Chase Investment Counsel in Charlottesville, Virginia, noting that riskier assets were selling off. "Nobody's rushing to buy."

Brent crude futures settled up 1.5% at $96.84 per barrel after earlier topping $99 for the highest level since September 2014, reflecting fears that Russia's energy exports could be disrupted by any conflict. U.S. West Texas Intermediate (WTI) crude settled up 1.4% at $92.35 per barrel after earlier hitting $96, its highest level since August 2014.[O/R]

The Dow Jones Industrial Average closed down 482.57 points, or 1.42%, at 33,596.61, while the S&P 500 lost 44.11 points, or 1.01%, falling to 4,304.76 and the Nasdaq Composite dropped 166.55 points, or 1.23%, to 13,381.52. [.N]

The MSCI world equity index, which tracks shares in 50 countries, shed 0.9% after earlier falling 1.5%, with the index at levels not seen since Jan. 28.

Spot gold fell 0.4% at $1,898.77 after earlier climbing to its highest level since June.

Yields on U.S. Treasuries edged higher after Biden announced new sanctions on Russia in retaliation for Moscow's dispatch of troops into what it recognized as two breakaway regions of Ukraine, but the bond market reaction was muted overall.

Benchmark 10-year notes last fell 2/32 in price to yield 1.9372%, up from 1.93% in the previous session. Yields move in the opposite direction to bond prices.

The dollar index fell 0.047%, with the euro up 0.14% to $1.1326. The Japanese yen weakened 0.29% versus the greenback at 115.06 per dollar, while Sterling was last trading at $1.3581, down 0.13% on the day.

The Russian rouble slid to 80.9275 against the U.S. dollar in earlier trading, touching its lowest level against the greenback since November 2020, before reversing course. The dollar was last down 1.7% against the rouble.

Russian dollar bonds extended their losses a little after the U.S. sanctions were announced, with longer-dated issues slipping to record lows trading in the mid-90s, data showed. The premium demanded by investors to hold Russian debt over safe-have U.S. Treasuries blew out to 329 basis points, the widest since the COVID-19 pandemic market rout in spring 2020.

Oil soars, stocks fall as Russia, Ukraine fears intensify
 

Related Articles

Cineworld Slumps 40% on Warning of Possible Dilution
Cineworld Slumps 40% on Warning of Possible Dilution By Investing.com - Aug 17, 2022

By Geoffrey Smith  Investing.com -- Cineworld (LON:CINE) shares plummeted 40% to an all-time low on Wednesday after the movie theater operator warned it may have to dilute...

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Comments (22)
Jack Drummond
Jack Drummond Feb 22, 2022 9:12PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Chad, does it hurt to be so stupid ??
Gershom Zvi
Gershom Zvi Feb 22, 2022 7:03PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Gazprom is crashed 11% today
Jay Garrelts
Jay Garrelts Feb 22, 2022 5:25PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
40 years of oil left All of you are invited to the end of the world party
asif ahmadi
asif ahmadi Feb 22, 2022 3:46PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
When will it fall, when our accounts become 0 😏
William Smith
William Smith Feb 22, 2022 2:21PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Biden's endless weakness has destroyed the world's balance of power. The end results will be disastrous for the United States.
Shep De
Shep De Feb 22, 2022 12:31PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Nag, oil JUMPED because Services a strong beat and that econ leading indicator is VERY bullish for inflation because it means more people transporting and freight ingredients things all over the USA.We're looking at sustained $120 oil summer, even, high as 150, and even if Iran nuclear for oil deal happens (I sure hope not, it's never good to do s deal with a axis power) over desperation. Wrong reasoning, won't look good politically either for Dems
Val Lange
Val Lange Feb 22, 2022 9:35AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
RTS 3% up the rest of the world down)))) Sanctuons!
Byedin Youlost
Byedin Youlost Feb 22, 2022 1:27AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
What a lie. Who actually believe this is happening. lol
Tre Hsi
Tre Hsi Feb 22, 2022 1:27AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
slow day at St Petersburg bot farm today?
PaoloB PaoloB
PaoloB PaoloB Feb 22, 2022 12:00AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Putin the Great! Genius, culture, and perspective.
Giuseppe Vitali
Giuseppe Vitali Feb 21, 2022 11:29PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
you can take communism out of Russia but you can't take some Russians out of communism, power hungry garbage individuals should be in a mental institution.
Tre Hsi
Tre Hsi Feb 21, 2022 11:29PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
you don't need to be a communist to be power hungry
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email