Equities erase losses as Treasury yields rise
BNN Bloomberg
U.S. stocks rebounded as investors weighed the impact of U.S. plans to impose a ban on imports of Russian energy. Treasury yields rose and crude oil climbed.
U.S. stocks rebounded as investors weighed the impact of U.S. plans to impose a ban on imports of Russian energy. Treasury yields rose and crude oil climbed.
President Joe Biden said the U.S. will ban imports of Russian fossil fuels including oil. The move will be matched by the U.K., which will announce a ban on oil imports, though it will continue to allow natural gas and coal from the country. The decision could exacerbate crude supply crunches that have sent oil surging past US$125 a barrel in New York. Other commodities markets remained under stress from the fallout from the war. Nickel was halted after a 250 per cent two-day gain, wheat hit an all-time high in Chicago and gold surged past US$2,000 an ounce.
Risk assets have been gripped by volatility since the war broke out almost two weeks ago. U.S. stocks closed Monday in a correction and futures plunged as much as 1.5 per cent overnight before a Bloomberg report that Europe was considering more stimulus jolted them higher. The decision on Russia’s oil has sapped the market of optimism, on concern that runaway inflation will hurt global economic growth.
“I don’t think the market’s ignoring anything at the moment, to be honest with you,” JJ Kinahan, chief market strategist at TD Ameritrade, said by phone. “In fact, everything is hyper-sensitive as to what may happen. It’s so fluid and we will see what happens. It’s really tough to predict day-to-day.”
The S&P 500 added 0.3 per cent, after dropping as much as 1 per cent, signaling much of Biden’s announcement was already priced in the market. The tech-heavy Nasdaq 100 also pared losses to trade 0.3 per cent higher. The 10-year Treasury held losses, with the yield earlier jumping along with its German counterpart following the report that the EU is considering joint bond sales to counter the fallout from the war.
