Tokyo, Mar 8: World markets were mixed on Tuesday, with European benchmarks and US futures turning higher after Asian shares extended losses.
Surging prices for oil and other vital commodities have been rattling global markets and the situation remains uncertain as investors search for safe havens from expanding sanctions against Russia.
Oil prices were relatively steady after surging past USD 130 a barrel the day before.
US benchmark crude gained USD 2.16 to USD 121.56 a barrel in electronic trading on the New York Mercantile Exchange. Brent crude, the international standard, added USD 2.43 to USD 125.64 a barrel.
Russian troops were making significant advances in southern Ukraine early Tuesday but were stalled in some other regions.
Ukrainian officials were skeptical over a Russian plan for safe corridors to let civilians escape fighting after earlier efforts to establish evacuation routes crumbled amid renewed attacks.
France’s CAC 40 added 2.2per cent to 6,112.21 while Germany’s DAX climbed 1.4 per cent to 13,010.32. Britain’s FTSE 100 gained 0.2 per cent to 6,971.04.
US futures also advanced, with the contract for the Dow industrials up 0.3 dollars while the contract for the S&P 500 gained 0.5 per cent.
Analysts expect the war in Ukraine to top the agenda for some time to come and say the full impact of the conflict is yet to be fully taken into account.
Worries are growing that Russia’s invasion of Ukraine will squeeze already tight supplies of oil.
Russia is one of the world’s largest energy producers, and oil prices already were high before the attack because the global economy is demanding more fuel after disruptions to travel and manufacturing from the pandemic.
But reports on Tuesday highlighted plans by European leaders to find ways to reduce the region’s current heavy reliance on Russian natural gas.
“Disruptions to energy markets and the possibility of a geopolitical paradigm shift make for a highly unpredictable environment,” Stephen Innes of SPI Asset Management said in a commentary. However, he added, “we should reach a point at which equities start to price in a light at the end of the tunnel.”
Japan’s benchmark Nikkei 225 shed 1.7 per cent to finish at 24,790.95. Australia’s S&P/ASX 200 sank 0.8 per cent to 6,980.30. South Korea’s Kospi slipped 1.1 per cent to 2,622.40. Hong Kong’s Hang Seng lost 1.4 per cent to 20,765.87, while the Shanghai Composite tumbled 2.4 per cent to 3,293.53.
India’s Sensex was the rare gainer, adding 1 per cent to 53,345.24.
The price of gold — a measure of nervousness on Wall Street — jumped more than USD 22 an ounce to USD 2,018.00.
Nickel, crucial for batteries and steel making among other vital manufacturing, jumped 44.3 per cent to USD 42,995.00 per metric ton on the London Metal Exchange. The exchange suspended trading after the price of the metal’s three-month contract more than doubled to over USD 100,000 a ton.
The exchange said the evolving situation in Russia and Ukraine had led it to suspend trading at least for Tuesday and possibly longer “on orderly market grounds.” Russia is a key supplier of nickel. It and Ukraine together also supply 13 per cent of the world’s titanium, which is used to make passenger jets and 30 per cent of the palladium, which goes into cars, cellphones and dental fillings.
In currency trading, the US dollar rose to 115.50 Japanese yen from 115.32 yen. The euro cost USD 1.0915, up from USD 1.0853. (AGENCIES)
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