Stocks fall, oil tops $100 a barrel as Ukraine war rages

Feb 28, 2022, 10:43 PM | Updated: Mar 1, 2022, 10:51 pm
A woman wearing a face mask walks past a bank's electronic board showing the Hong Kong share index ...

A woman wearing a face mask walks past a bank's electronic board showing the Hong Kong share index in Hong Kong, Wednesday, March 2, 2022. Asian stock markets slid Wednesday and oil prices surged more than $5 per barrel as Russian forces stepped up attacks on Ukrainian cities. (AP Photo/Kin Cheung)

(AP Photo/Kin Cheung)

BEIJING (AP) — Asian stock markets slid Wednesday and oil prices surged more than $5 per barrel as Russian forces stepped up attacks on Ukrainian cities.

Shanghai, Tokyo, Hong Kong and Seoul declined as President Vladimir Putin’s invasion fueled fears of global economic turmoil. Sydney gained.

Wall Street’s benchmark S&P index lost 1.5% on Tuesday, deepening a two-month-old skid.

The war is adding to worries about global economic growth in the face of plans by the Federal Reserve and other central banks to fight surging inflation by raising interest rates.

“The conspiracy of geopolitical uncertainty and stagflation-type impulses is a brutal shock,” Tan Boon Heng of Mizuho Bank said in a report.

Investors await more clues about possible rate hikes when Fed Chair Jerome Powell speaks Wednesday before Congress.

Oil prices rose despite an agreement by the United States and other major governments in the International Energy Agency to release 60 million barrels from strategic reserves to stabilize supply.

Benchmark U.S. crude jumped another $5.09 to $108.45 per barrel in electronic trading on the New York Mercantile Exchange. It rose $7.69 on Tuesday to $103.41.

Brent crude, the price basis for international oils, gained $5.33 to $110.28 per barrel in London. It soared $7 the previous session to $104.97.

“Markets dismissed the notion that 60 million barrels of strategic reserves released will be consequential to the risks of Russian supply jeopardized,” said Tan of Mizuho. “Russia pumps more than that in just six days.”

Late Tuesday, President Joe Biden announced he was joining U.S. allies in closing the country’s air space to Russian aircraft.

In an annual State of the Union speech, Biden said he would try to cushion the impact of higher oil prices on Americans. “I will use every tool at our disposal to protect American businesses and consumers,” Biden said.

The Nikkei 225 in Tokyo lost 1.7% to 26,378.25 and the Shanghai Composite Index shed 0.5% to 3,468.56. The Hang Seng in Hong Kong sank 1.1% to 22,500.09 and the Kospi in Seoul was off less than 0.1% at 2,697.85.

Sydney’s S&P-ASX 200 added 0.3% to 7,114.80 after government data showed Australia’s economy grew by 3.4% in the final three months of 2021 over the previous quarter and consumer spending was strong.

New Zealand and Singapore declined while Jakarta and Bangkok advanced.

Moscow’s attack on Ukraine and Russian threats of retaliation in response to Western sanctions also have roiled global markets for wheat and other commodities.

Economists say Asian economies are less exposed to the war than Europe but those that need imported oil will be hit by rising global prices, adding to inflation pressure and depressing business and consumer activity.

Russia is the No. 2 global crude exporter, behind Saudi Arabia. Any potential disruption in supply could boost prices and add to persistent inflation pressures around the world.

Prices of wheat, of which both Russia and Ukraine are important exporters, have risen more than 20% over one month ago.

Investors shifted money into the safe haven of government bonds, pushing up their market price and narrowing the yield, or the difference between the current price and the payout at maturity.

The yield on the 10-year Treasury fell by an unusually wide margin, to 1.73% from Monday’s 1.83%.

The value of Russia’s ruble fell further to 0.9 U.S. cents despite the Russian central bank’s decision Monday to raise interest rates to defend the currency.

On Wall Street, the S&P 500 declined to 4,306.26. The Dow Jones Industrial Average lost 1.8% to 33,294.95. The Nasdaq composite slid 1.6% to 13,532.46.

JPMorgan Chase fell 3.8% and Bank of America slid 3.9%.

More than 70% of the stocks in the S&P 500 closed lower. Technology, industrials and communication companies were among the biggest drags on the benchmark index.

Energy stocks rose. Occidental Petroleum jumped 7%.

Companies were cutting ties with Russia. Apple said Tuesday it has stopped selling its iPhone and other popular products there. BP and Shell are pulling out of investments in the Russian oil industry.

The dollar gained to 115.00 yen from Tuesday’s 114.86 yen. The euro advanced to $1.1129 from $1.1123.

Copyright © The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

AP

President Joe Biden speaks before signing into law S. 2938, the Bipartisan Safer Communities Act gu...
Associated Press

Biden signs landmark gun measure, says ‘lives will be saved’

WASHINGTON (AP) — President Joe Biden on Saturday signed the most sweeping gun violence bill in decades, a bipartisan compromise that seemed unimaginable until a recent series of mass shootings, including the massacre of 19 students and two teachers at a Texas elementary school. “Lives will be saved,” he said at the White House. Citing […]
7 hours ago
FILE - This Sept. 20, 2017, file photo shows a sign at the Disney store on the Champs Elysees Avenu...
Associated Press

Abortion ruling thrusts companies into divisive arena

The Supreme Court’s decision to end the nation’s constitutional protections for abortion has catapulted businesses of all types into the most divisive corner of politics. Some companies that stayed silent last month — when a draft opinion by Justice Samuel Alito was leaked to Politico — spoke up for the first time Friday, including The […]
7 hours ago
Associated Press

A roof over their head: Churches use tiny homes for homeless

Churches across the U.S. are tackling the big question of how to address homelessness in their communities with a small solution: tiny homes. On vacant plots near their parking lots and steepled sanctuaries, congregations are building everything from fixed and fully contained micro homes to petite, moveable cabins, and several other styles of small-footprint dwellings […]
7 hours ago
Flowers are left at the scene of a shooting in central Oslo, Saturday, June 25, 2022. Norwegian pol...
Associated Press

Gunman kills 2 during Oslo Pride festival; terror suspected

OSLO, Norway (AP) — A gunman opened fire in Oslo’s night-life district early Saturday, killing two people and leaving more than 20 wounded in what Norwegian security service called an “Islamist terror act” during the capital’s annual Pride festival. Investigators said the suspect, identified as a 42-year-old Norwegian citizen originally from Iran, was arrested after […]
7 hours ago
In this combo photo, protesters gather outside the Supreme Court in Washington, Friday, June 24, 20...
Associated Press

Two months of waiting, and finally a Supreme Court ruling

Follow the links in this story to recent AP coverage about abortion over the last three months. ___ And so the interminable wait after the leak of the decision overturning Roe v. Wade has come to an end — nearly two months in which abortion and all of its complexities have been have been hashed […]
7 hours ago
With tear gas in the air, a large number of police surround the Arizona Capitol after protesters re...
Associated Press

Police at Arizona Capitol fire tear gas, disperse protesters

PHOENIX (AP) — Police fired tear gas to disperse anti-abortion demonstrators from outside the Arizona Capitol Friday night, forcing lawmakers to huddle briefly in a basement inside the building as they rushed to complete their 2022 session. Thousands of protesters had gathered earlier on the Capitol grounds in Phoenix, divided into groups both supporting and […]
7 hours ago

Sponsored Articles

(Courtesy Condor)...
Condor Airlines

Condor Airlines shows passion for destinations from Sky Harbor with new-look aircraft

Condor Airlines brings passion to each flight and connects people to their dream destinations throughout the world.
...
Carla Berg, MHS, Deputy Director, Public Health Services, Arizona Department of Health Services

Vaccines are safe if you are pregnant or breastfeeding

Are you pregnant? Do you have a friend or loved one who’s expecting?
...
Carla Berg, MHS, Deputy Director, Public Health Services, Arizona Department of Health Services

Update your child’s vaccines before kindergarten

So, your little one starts kindergarten soon. How exciting! You still have a few months before the school year starts, so now’s the time to make sure students-to-be have the vaccines needed to stay safe as they head into a new chapter of life.
Stocks fall, oil tops $100 a barrel as Ukraine war rages