Stocks poised for bear markets as oil soars
BNN Bloomberg
Major stock markets from Europe to Asia are heading for bear markets -- falling more than 20 per cent from highs -- amid fears of an inflation shock as crude oil soared on the prospect of a ban on Russian supplies.
Major stock markets from Europe to Asia are heading for bear markets -- falling more than 20 per cent from highs -- amid fears of an inflation shock as crude oil soared on the prospect of a ban on Russian supplies.
U.S. index futures also fell, with airline stocks down in premarket trading and energy advancing after oil jumped as high as US$139 a barrel. Banks led losses in Europe, while defense companies gained on the escalating war in Ukraine. European gas, palladium and copper hit all-time highs.
The Biden administration is considering whether to ban the import of Russian oil and energy products, a move that could add to economic pressure as more companies pull out of the country in response to Moscow’s invasion of Ukraine. High energy prices threaten to stall global growth, a risk that is sending tremors across markets.
Commodities from grains, metals have also surged on concerns of chaos in raw-material flows due to the invasion and sanctions on Russia that are turning the resources powerhouse into a global pariah. Commodity-linked currencies strengthened.
The euro sank -- at one point dropping below parity against the Swiss franc -- on concerns about the economic outlook for Europe, which relies on Russian energy. Treasuries were little changed and the dollar advanced. Gold rose to US$2,000 an ounce.
