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

Stocks fall, bonds rise on Ukraine tensions

Stock Markets Feb 18, 2022 04:46PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
2/2 © Reuters. FILE PHOTO: A man looks at stock market monitors in Taipei October 8, 2008. REUTERS/Nicky Loh (TAIWAN)/File Photo 2/2

By Herbert Lash

NEW YORK (Reuters) -A gauge of global stocks fell and government debt prices rose on Friday after hopes that diplomacy might resolve the Ukraine crisis faded on news Russian-backed separatists were evacuating residents from breakaway regions in the country's east.

Sentiment soured as shelling increased in eastern Ukraine and a rebel leader announced the surprise evacuation, a surprise development in a conflict the West suspects Russia will use to justify an all-out invasion of its neighbor.

The dollar rebounded and the safe-haven Swiss franc rose as a mood that had improved on news late on Thursday that U.S. Secretary of State Antony Blinken would meet with Russian Foreign Minister Sergei Lavrov next week darkened again.

The dollar index, a measure of the greenback to six major trading currencies, rose 0.301%, while the euro against the franc fell 0.19%. The two currencies often are recipients of a flight to safety during times of crisis.

The ruble weakened 1.40% at 77.16 per dollar as Russian assets have been hammered by fears that a military conflict would trigger sweeping new Western sanctions against Russia.

Germany's foreign minister, Annalena Baerbock, said all options were on the table regarding sanctions on Russia if it attacks Ukraine, including the Nord Stream 2 pipeline intended to bring Russian gas to Germany.

Investors are waiting for the three-day weekend to be over to assess an equity market already weaker on the outlook that rising interest rates will hurt growth stocks, said Rick Meckler, partner at Cherry Lane Investments.

"Coming into this weekend with geopolitical concerns and what's been a persistently weak market, a lot of people threw in the towel," Meckler added.

In Europe, the pan-regional STOXX 600 share index retreated from initial gains to close down 0.81%, with travel and banking shares leading the decline. MSCI's gauge of stocks across the globe shed 0.85%, down almost 7% this year.

On Wall Street, the Dow Jones Industrial Average fell 0.68%, the S&P 500 lost 0.72% and the Nasdaq Composite dropped 1.23%. All but one of the 11 S&P 500 sectors fell, with the exception being consumer staples, which do well in economic downturns.

The worst-case scenario, after discounting an all-out war, would be Russia occupying most of Ukraine and suffering severe economic consequences, which would slow the global economy, said David Kelly, chief global strategist at JPMorgan (NYSE:JPM) Funds.

"You get a spike in inflation but the Federal Reserve will probably see that kind of spike in energy prices associated with more uncertainty as ultimately disinflationary rather than inflationary," Kelly said.

"As an investor I wouldn't get out of good long-term investments because of that," Kelly added.

As tensions rise, history shows that investors overestimate the downside impact and underestimate the possibility of a positive resolution, said Thomas Hayes, chairman and managing member of hedge fund Great Hill Capital LLC.

"In the worst-case scenario that Russia does take Ukraine, hypothetically as they took Crimea, a lot of the bad news is priced in and it would be 'sell the rumor, buy the news,'" Hayes said.

U.S. Treasury and European government debt rose as Ukraine developments dented risk appetite. The yield on 10-year Treasury notes fell 5.2 basis points to 1.922%, while benchmark German 10-year bond yields were set for their biggest weekly fall since November. Bond yields fall when prices rise.

Gold retreated slightly from the key $1,900 level. U.S. gold futures settled down 0.1% at $1,899.80 an ounce.

Crude oil extended losses and was heading for a weekly fall as the prospect of increased Iranian oil exports eclipsed fears of potential supply disruption resulting from the Russia-Ukraine crisis.

U.S. crude futures fell 69 cents to settle at $91.07 a barrel, while Brent, the international benchmark, settled up 57 cents at $93.54 a barrel.

Bitcoin fell below the $40,000 mark at one point, but was last down 1.45% at $40,095.93.

Stocks fall, bonds rise on Ukraine tensions
 

Related Articles

Dow Futures Ease After Positive Week
Dow Futures Ease After Positive Week By Investing.com - Aug 14, 2022 3

By Oliver Gray Investing.com - U.S. stock futures were trading slightly lower during Sunday’s evening deals, after major benchmark averages rallied for the 4th consecutive...

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 (26)
Henrik Lindberg
Henrik Feb 22, 2022 2:03AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Bonds lower.
Bulls MakeMore
Bulls MakeMore Feb 18, 2022 5:05PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Pray for peace in Ukraine.
peter smith
peter smith Feb 18, 2022 4:18PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
guys it s all dirty politics .... russian does not want ukrain join Nato , USA wants Russia to attack so they could close gas line to Germany, Germany wants to use that gas line , ukrain does not want Germany use gas line so they get cheap gas from Russia... basically whatever Russia and Germany wants goes against USA and ukrainalso russian can do on it s territory want ever it wants so why would anyone tell Russia where they keep their army ? Putin plays the game ... sure ... he wants to show Nato what can happen if nato join Ukrain ... it s chicken game pretty much between russia and usathe only party that would benefit from war between Russia and ukrain would be only one country .. u guess ... USA... Russians , ukrain and German do not want that war ... it s all dirty dirty politics Ps there will be no war
Marco cuevas
Marco cuevas Feb 18, 2022 7:19AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Dont fall for it people mass media and hedge fund algos want you to jump in so they can scalp you...just hold guarantee we end up red today count on it
Jamsheer Parambadi
Jamsheer Parambadi Feb 18, 2022 5:16AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
War ….No War then War …No War…then War No War…News Playing with Investors Money
Rich Golf
Rich Golf Feb 18, 2022 2:48AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Will give up these gainz
Alexander Pham
Alexander Pham Feb 18, 2022 1:36AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
First war, then no war. Then war and no war. *******, make up your ***mind.
Emmanouil Topouzoglou
Emmanouil Topouzoglou Feb 18, 2022 1:36AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Exactly Mohamed. It is manipulated
valentino di pierro
valentino di pierro Feb 18, 2022 12:42AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
USA and GB looking for was because their country is in deep ******* Leave Europe and go back to your countries. It's a pleasure accepting real Europeans like Russia in NATO and throw out USA... War mongers!
Tre Hsi
Tre Hsi Feb 18, 2022 12:42AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
"It's a pleasure accepting real Europeans like Russia in NATO and throw out USA." --- good lord, is there a malfunction in the St Petersburg bot farm?
Adamo Nals
Adamo Nals Feb 18, 2022 12:37AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
We are below the 200 Day moving average and this is just another example of fantasy land news. Bottom line is markets/indices have to reprice itself for an environment that hasn’t been seen since before 2000. Where interest rates are 5% and 30 year mortgages are 7%. Market has to come down another 20 to 30% could be quick
William Smith
William Smith Feb 18, 2022 12:37AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Do the math, 5% interest rates means instant depression with national debt at current levels.
Marcus Bennett
Marcus Bennett Feb 18, 2022 12:22AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
can we have a publisher create a blog about billions of the taxpayers going toward military spending operations, while civilians struggle in under developed communities struggling to gain minimum wages & freedom education.
 
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