Russia-Ukraine War – Day 8 – The war has shaken the whole world, from the global stock market to transportation. US and European stocks, which have fallen a few days back, rebounded on Wednesday, but crude prices surged past $110 a barrel as fighting raged in Ukraine for the seventh day, posing a challenge for central banks hoping to curb rising inflation.
Whereas gold prices came down to improve sentiment and US Treasury Yields rose from eight-week lows as investors weighed how aggressively the Federal Reserve (Fed) might raise interest rates in coming months, with the outlook on growth a major concern.
The Fed will step forward with plans to raise rates this month to try to tame high inflammation, but the Ukraine war has made the outlook “highly uncertain” for US policymakers as they plan ahead, stated Fed Chair, Jerome Powell.
Markets are struggling with the growth in US and Europe because of the Russia-Ukraine conflicts, said Marvin Loh, global macro strategist at State Street. “But generally speaking, when you get these surges in energy prices, there is a deflationary component associated with that because it saps growth elsewhere”, he added.
The pan-European STOXX 600 index rose 0.90%, recovering from the earlier decline, and MSCI’s gauge of stocks across the globe closed up at 0.93%.
On Wall Street, the Dow Jones Industrial Average rose 1.79%, the S&P 500 advanced 1.86%, and the Nasdaq Composite gained 1.62%.
In addition, crude oil is again on a wave of divestments from Russian oil assets by major companies and is expecting that the market will remain short in supply for the upcoming months. The increasing crude oil prices will lead to inflating petrol prices, as expected.
US crude prices rose $7.19 to settle at $110.60 a barrel, the highest close since 2011, when Brent rose at $7.96 and settled up at $112.93.
Not only this, the dollar index rose to 0.026%, with the euro down 0.04% to $1.1122. The Japanese Yen weakened 0.53% at 115.52 per dollar.