U.S. stock futures and global equity indexes dropped after Russian forces intensified strikes across Ukraine and as the threat of a potential ban on imports of Russian oil helped spur a surge in energy prices.
March 7, 2022
2 min read
Global markets fall
U.S. Secretary of State, Antony Blinken
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In another sign of rising risk aversion, the dollar, U.S. Treasury bonds and gold all rallied.
By early afternoon Monday Hong Kong time, futures tied to Dow Jones Industrial Average, S&P 500 and Nasdaq-100 had declined between 1.1% and 1.8%, suggesting U.S. markets could come under pressure in Monday’s trading. Futures tied to Europe’s Euro Stoxx 50 index fell more than 3%.
The Dow Jones Industrial Average last week recorded its fourth straight week of losses, while U.S. bond yields recorded their biggest one-week decline since March 2020.
Stock benchmarks in the Asia-Pacific region fell sharply Monday, with South Korea’s Kospi Composite and the mainland Chinese CSI 300 both falling more than 2%. Japan’s Nikkei 225 shed more than 3% and Hong Kong’s Hang Seng Index fell 3.4%, putting it on pace to close at a multiyear low.
Front-month futures for Brent crude, the global oil benchmark, jumped 9.4% to $129.15a barrel, after earlier topping $130. The U.S. equivalent, West Texas Intermediate, added 7.7% to $124.52. The U.S. and European partners are discussing a ban on imports of Russian oil, Secretary of State, Antony Blinken said Sunday.
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The yield on the benchmark 10-year U.S. Treasury note stood 0.027 percentage point lower at 1.695%, according to Tradeweb. Bond yields fall as prices rise.
The dollar continued its recent rally, with the WSJ Dollar index rising 0.26% to 91.17.
Gold prices also built on their recent ascent, with front-month futures adding 1.4% to $1,992.90 a troy ounce. That took the precious metal closer to the record high of $2,051.50 which it hit in August 2020. WSJ