- In early morning trading on Wall Street, oil prices have continued to rise, which has the potential to exacerbate already high inflation throughout the globe.
- US oil prices surged to as high as $130 a barrel overnight because of the likelihood that the United States will ban imports from Russia. However, when oil prices dropped below $120 per barrel earlier in the day, stocks throughout the globe fell even more.
- For a short while, certain European markets recouped some of their significant losses as markets followed the movement of oil. After plunging 5%, the Paris stock market rebounded to close 0.7 percent down.
- A 1.3 percent drop in the Dow Jones Industrial Average was reported at 10:51 a.m. Eastern time; the Nasdaq Composite fell by 2 percent.
- The price of gold was also higher, albeit not by as much as it had been when oil prices were at their highest. Wall Street was also more concerned. Gold’s price temporarily rose to $2,007.50 an ounce before settling at $1,992.70, up 1.3% from the previous trading day.
- On the heels of Russia’s invasion of Ukraine, the price of oil has risen sharply. A spike in oil prices was already in place before the Russian strike since the global economy is relying on more fuel after the coronavirus-caused closure of Russia’s economy.
- Nancy Pelosi, the speaker of the House of Representatives, sent a letter to her colleagues on Sunday announcing that “the House is actively investigating tough measures” to further isolate Russia in the wake of its assault on the Ukrainian parliament. According to her, this might include a restriction on Russian oil and energy imports.
- Despite a lengthy list of steps to penalise Russia, the US administration has yet to take this big step, as the White House has said it aims to prevent disruptions in oil markets. Its goal is to keep the price of gasoline from rising too quickly.
- According to reports, the United States is also contemplating loosening its sanctions on Venezuela. In theory, this might free up more crude oil, easing fears about declining Russian supply.
- For the first time since 2008, gas prices have surpassed the $4 mark for the first time in a gallon of normal on Sunday. Gas prices were $3.441 per gallon a month ago, according to AAA.
- At $118.53 a barrel, US crude oil was up 2.5% after earlier hitting $130.50 a barrel. Brent oil, the global benchmark, rose 4% to $122.85 a barrel, having previously topped $139.
- Amid fears that Russia’s invasion would drive up the price of oil, wheat, and other agricultural products produced in the area, markets throughout the globe have been swinging violently lately. Consumer prices in the United States rose at the quickest pace in four decades last month compared to a year earlier.
- Some nations, such as Europe, Africa, and Asia, depend on the huge, rich farmlands of the Black Sea region, dubbed the “breadbasket of the world,” because of the turmoil in Ukraine.
- Central banks throughout the globe are feeling the strain of the battle, with the Federal Reserve on track to increase interest rates for the first time since 2018 later this month. In an effort to reign in excessive inflation, higher interest rates will hinder the economy. However, if the Fed increases interest rates too much, the economy runs the danger of entering a downturn.
- Some investors have speculated that the ongoing conflict in Ukraine might force the Federal Reserve to slow off on interest rate rises. Investors like low interest rates because they tend to increase the value of stocks and other financial instruments in general.
- Economists at Goldman Sachs, however, believe that may not be the case this time around. There is a greater risk of long-term high inflation if oil, wheat, and other commodities continue to rise in price. That might have a significant impact on the Fed’s strategy.
- Markets may have to re-learn that the contrary may also be true after decades of economic, financial or political shocks causing interest rates to fall,” Goldman Sachs analysts headed by Jan Hatzius said.
- In addition to the sanctions imposed by governments as a result of Russia’s invasion of Ukraine, corporations have also imposed restrictions on the country. Mastercard, Visa, and American Express, as well as Netflix, have joined the growing list of firms leaving Russia.
- Yeap Jun Rong, a market analyst at IG in Singapore, expects “no evidence of dispute settlement so far to put a limit on risk emotions entering the new week,” he said.
- There is little doubt that economic sanctions will not prevent Russian aggression, but rather will function as a punitive measure at the price of global economic progress. This should be obvious by now. Companies’ margins and consumer spending may be at risk because of rising oil prices, Yeap warned.
- Following a roughly 10% interest by billionaire Ryan Cohen’s investment business in the company, Bed Bath & Beyond stock jumped on Wall Street. Aside from being one of the co-founders of Chewy, Cohen gained notoriety when he bought a stake in GameStop, a failing video game retailer, and was later made chairman of the board.
- To get to $24.25, shares of Bed Bath & Beyond were up 49.9 percent.
- There was an increase in Treasury rates, with the 10-year rate going up from 1.72 percent to 1.75 percent.
