Stocks and futures fall, bonds surge on Ukraine
BNN Bloomberg
A risk-off mood continued to grip global markets on Tuesday as the conflict in Ukraine intensified.
A risk-off mood continued to grip global markets on Tuesday as the conflict in Ukraine intensified amid mounting penalties against Russia. U.S. equity futures fell along with stocks in Europe, while bonds surged and oil pushed sharply higher.
Futures on the S&P 500 and Nasdaq 100 declined, signaling a weak U.S. open. The Treasury 10-year yield extended Monday’s drop. WTI crude rose above US$100 a barrel as traders balanced the possible release of emergency stockpiles against fears of disruption to Russian energy exports.
Bonds throughout Europe gained, with Germany’s 10-year yield heading back below zero percent for the first time since January. Traders are betting the European Central Bank will put off raising interest rates until next year as the economic fallout from Russia’s invasion of Ukraine dents growth in the region.
Carmakers and travel stocks led a decline of more than 2 per cent in the Stoxx Europe 600 index. Basic resources was the only sector in the green as commodity prices extended a rally. Bayer AG gained after positive results, but warned that the Ukraine conflict poses a risk to its outlook.
Hopes of an early negotiated settlement over Ukraine faded after Russia vowed to continue its attack until its goals are met, and troops were seen moving in a large convoy toward the capital, Kyiv. In the latest development on the sanctions front, the European Union is discussing the exclusion of seven Russian banks from the SWIFT financial-messaging system, including VTB Bank PJSC and Bank Rossiya, according to a draft list of the proposal.
