Stocks plunged as Russian invasion in Ukraine intensified with escalation of bombardment in the capital Kyiv. However, U.S. future and European stocked extended gains as economic sanctions and war impact already priced in the market price. Earlier U.S. announced ban on Russian oil and gas.
The CSI300, KOSPI, SET and TOPIX is down by 0.92%, 0.67%, 1.09% and 0.97% respectively while SET defined negative trend closing inching up by 1.52%.
Contracts expiring later this month on the S&P 500 and Nasdaq 100 gauges added at least 1.7% each after U.S. equities tumbled to a nine-month low Tuesday.
Investors are awaiting for global inflation shock from a commodity price rally fueled by sanctions on Russian oil and gas. However, the next few days would give some clue on how the central banks globally would address this. The European Central Bank will announce its rate decision on Thursday followed by the Federal Reserve and Bank of England next week.
“Stock markets are highly volatile as uncertainties loom,” Ipek Ozkardeskaya, a senior analyst at Swissquote, wrote in a note.
“Rallies are mostly driven by intra-day trades, whereas longer-term investors are leaving the market.”
Crude oil future prices remain elevated with WTI trading at $122.14 per barrel while Brent is trading at $126.83 per barrel.
