June 13, 2024

Ferrum College : Iron Blade Online

Complete Canadian News World

Oil prices fall, stocks recover as West punishes Russia with 'modest' sanctions

Oil prices fall, stocks recover as West punishes Russia with ‘modest’ sanctions

Hong Kong
CNN Business

Global markets are rebounding and oil prices are falling after the United States and its allies hit Russia with only a limited first wave of… Penalties About what President Joe Biden called the beginning of an “invasion” of Ukraine.

European shares rose in early trading after the West kept its harshest sanctions in reserve in an attempt to deter further aggression by Moscow. FTSE 100

It added 0.6% in London, and the German DAX 30 index

It rose 1.3% and CAC 40 in France

It jumped 1.6%.

In Asia, Hong Kong Hang Seng

The index finished up 0.6% after that It fell 2.8% on Tuesday Her biggest daily loss in five months. China’s Shanghai Composite Index rose 0.9%. The Japanese stock market was closed for a holiday.

Dow futures rose 235 points, or 0.7%. S&P 500 and Nasdaq futures rose 0.8% and 1.1%, respectively.

Oil prices fell. US crude futures fell 0.8% to $91.14 a barrel, while Brent crude fell 0.7% to $96.15 a barrel. Both receivers jump on tuesday With the escalation of the Ukraine crisis.

Biden offered on Tuesday what he called The “first tranche” of US sanctions Against Russia, including two financial institutions, Russian sovereign debt, Russian elites and their family members.

“This is the beginning of an invasion, and thus this is the beginning of our response,” A senior official in the US administration said. “If Putin continues to escalate, we will further escalate using both financial sanctions and export controls, which we haven’t revealed yet.”

See also  Gabon coup leaders appoint General Brice Olegoy Nguema as new leader

Other Western countries have also announced retaliatory measures against Russia, with Germany on Tuesday halting ratification of the controversial order Nord Stream 2 . pipelineBuilt by Gazprom to transport natural gas directly from Russia to Germany.

“Punitive measures on Russia may be seen as less aggressive than anticipated, and some forecasts point to a standstill for the time being,” Yeap Jun Rong, a market analyst in Singapore for IG Group, wrote in a research note on Wednesday.

He noted that the “most severe” impact of the sanctions could come from the sovereign debt sanctions, which effectively cut off Russia from Western financing. But other sanctions on state-owned banks and Russian elites appear to be considered “relatively modest” by the markets.

“However, the situation remains highly volatile and uncertain, and any negative news flow could potentially disrupt markets,” Yip added.

Wednesday’s rally was in sharp contrast to the previous trading day, when Global stock markets fell Crude oil prices soared to $99 a barrel after Russia ordered its forces into parts of eastern Ukraine. The Dow closed nearly 483 points, or 1.4%. The S&P 500 finished the day 1% lower, and entered a correction – defined by a 10% drop from its recent high. The Nasdaq index fell 1.2 percent.

Kevin Liptak contributed to this report.