Oil keeps rising rapidly and stock markets are declining after talking about a Russian-Ukrainian war

2022-02-14T19:25:42
...

Oil keeps rising rapidly and stock markets are declining after talking about a Russian-Ukrainian war

 

Oil keeps rising rapidly and stock markets are declining after talking about a Russian-Ukrainian war : Experts and analysts say that we are in the process of a third world war,
which will start from Ukraine, in case Russia carries out its threat and invasion,
which is troubling stock markets, especially in Europe, but it also pushes oil steadily higher. 

Evest follows market developments in the following report.

Topics:

Expectations of European indices to fall today

Speculation that interest will be raised soon is increasing

The situation is similar in Asia

A big leap in oil

The situation with regard to Ukraine

Expectations of European indices to fall today

Major European stock markets are expected to fall sharply Monday at the opening against the backdrop of rising tensions over Ukraine and concerns about tightening US monetary policy.

Futures indicate declines of 1.43% for the Dax Index in Frankfurt, 0.58% for the Footsy Index in London and 1.57% for Euro Stoxx.

The initially available indices also indicate a fall of 1.57% in the Parisian CAC index.

The United States warned again over the weekend that the Russian invasion of Ukraine could begin at any time.

US President Joe Biden spoke with his Russian counterpart Vladimir Putin on Saturday and warned him of severe
and swift economic sanctions from the United States in the event of the invasion of Ukraine.

The exchange of talks between the two men took place, the third since December,
when Moscow began large-scale military exercises in Belarus,
on the northern border of Ukraine, and in the Black Sea, on its eastern side.

German Chancellor Olaf Scholz traveled to Ukraine on Monday to meet with President Volodymyr Zelensky to express Berlin’s solidarity with Kyiv and help avoid war in Europe.

He is then scheduled to head to Moscow on Tuesday for talks with Vladimir Putin.

Speculation that interest will be raised soon is increasing

Investors are concerned that the Fed’s monetary policy tightening will increase faster than expected
after inflation figures in the United States showed a 7.5% increase over a year in January, which has not been seen since February 1982.

The possibility of a closed-door meeting of the Federal Reserve Board’s Monetary Policy Committee on Monday (4:30 pm GMT) sparked speculation that interest rates would be raised urgently – off the FOMC meeting schedule – although the event appears to be usual.

Mary Daly, head of the San Francisco branch, tried to allay concerns by saying in Sunday’s interview that “too abrupt and aggressive” monetary policy would be counterproductive.

Concerns about the situation in Ukraine weighed on Wall Street on Friday evening, where only the energy sector was prominent thanks to high oil prices.

The Dow Jones index declined by 1.43% to 34738.06 points.

The Standard & Poor’s index lost 1.90% to 44,188.64 points and the Nasdaq Composite index declined 2.78% to 13,791.15 points.

Futures on the three indicators indicate hypothetical stability of the Nasdaq index at its opening on Monday
and gains of more than 0.1% for the Dow Jones and Standard & Poor’s.

The situation is similar in Asia

In Asia, the Tokyo Stock Exchange fell by 2.23%, influenced by the general climate of risk aversion.

In China, indicators are also moving in the Red Zone, influenced by falling financial and real estate stocks after the People’s Bank of China announced
that it would not use real estate as a short-term tool to stimulate the economy.

CSI 300 index fell by 1.19%. Hong Kong’s Hang Seng lost 1.08%, and South Korea’s Kospi index fell by 1.49%. In the meantime,
the Australian S&P/ASX 200 index rose by 0.57%.

A big leap in oil

Oil prices rose on Monday after updating their highest level since September 2014 on Friday.

On February 11, oil prices rose sharply following reports that US authorities were awaiting Russia’s imminent invasion of Ukraine.

On Friday, the President’s national security adviser, Jake Sullivan,
issued a statement saying Russia had a chance to attack Ukraine soon. 

Bloomberg noted that Saturday’s telephone conversation between US and Russian Presidents Joe Biden and Vladimir Putin failed to ease tensions.

Russia denies it plans to attack Ukraine.

Experts are concerned that the Russian invasion of Ukraine, which will entail new sanctions against Moscow,
will drastically alter global energy flows.

Today, Brent crude futures for April rose by $1.16 (1.23%) on the London Futures Exchange, to $95.6 per barrel.

Brent crude rose by $3.03 (3.3 percent) to $94.44 per barrel on Friday.

West Texas Intermediate crude futures for March in electronic trading on the New York Mercantile Exchange (NYMEX) rose by $1.41 (1.51%), to $94.51 per barrel.

During the previous session, the futures contract rose by $3.22 (3.6%) to $93.1 per barrel.

Over the past week, the price of Brent crude rose by 1.3%, that of West Texas Intermediate – by 0.9%.

According to Reuters experts, “The oil market has been waiting for a strong incentive to justify the rise in the oil price above $100 a barrel,
and the situation in Ukraine appears to be worsening.

If Russian forces move, expectations of a worsening supply situation will surely lead to a further 10% rise in oil prices. “

“The rise to $100 per barrel is around the corner, and supply concerns will be the main driver of higher prices
even if demand remains at current levels,” says Hui Lee, an economist at Overseas China Banking Corp.

The situation with regard to Ukraine

CBS News, citing people familiar with the matter, reported that the US presidential administration is preparing to withdraw all US personnel from Kyiv within two days.

“The Biden administration is preparing to withdraw all American personnel from Kyiv within the next 24-48 hours,” said the channel in a tweet.

On Saturday, the Ministry of Foreign Affairs issued an order for the majority of the staff of the United States Embassy
to leave Ukraine because of the tense security situation.

US presidential aide Jake Sullivan also urged all U.S. citizens in Ukraine to quickly leave the country and warned that there was “no prospect of an American military evacuation” for those who choose to stay.

On Friday, Sullivan issued a statement saying that “if Russia takes such a decision, it has the capacity to attack Ukraine, without waiting.”

brandfooter