US stock markets: U.S. stocks ended sharply lower in yesterday’s session as the United States and European allies considered banning Russian oil imports, leading oil and other commodity prices to soar with investors worried about how it will dent growth.
Oil prices rose to their highest levels since 2008 and are up more than 60% since the start of 2022. Brent rose $5.10, or 4.3%, to settle at $123.21 a barrel, and U.S West Texas Intermediate (WTI) rose $3.72, or 3.2%, to settle at $119.40 a barrel. All major stock indexes posted sharp losses. The Dow Jones Industrial Average held up the best of the main indexes, posting a loss of 2.4%, while the Nasdaq Composite fell the most, ending down 3.6%. Of the 11 major S&P 500 sectors, nine ended in the red.
Consumer discretionary, communications services, and information technology were the weakest groups. The energy was the best performer, with utilities also posting solid gains of more than 1%.
The Russia-Ukraine war has exposed a weak spot for Europe's economy - the reliance on energy imports - and with crude at 2008 levels.
Dow Jones Industrial Average
The Dow Jones Industrial Average lost 2.37% to hit a new 6-months low. The best performers of the session on the Dow Jones Industrial Average were Chevron Corp, which rose 2.14% or 3.39 points to trade at 162.04 at the close. Meanwhile, Johnson & Johnson added 1.61% or 2.73 points to end at 172.21 and Amgen Inc. was up 0.62% or 1.45 points to 234.36 in late trade. The worst performers of the session were American Express Company, which fell 7.99% or 13.82 points to trade at 159.13 at the close. Boeing Co declined 6.45% or 11.67 points to end at 169.17 and Nike Inc. was down 5.14% or 6.74 points to 124.44.
NASDAQ 100
The NASDAQ index lost 3.62%. The top performers on the NASDAQ Composite were Imperial Petroleum Inc. which rose 121.89% to 7.50, Oceanpal Inc. which was up 101.60% to settle at 1.26 and Marine Petroleum Trust which gained 69.85% to close at 12.11. The worst performers were Atreca Inc. which was down 38.27% to 3.21 in late trade, Inspirato Inc. which lost 37.26% to settle at 26.65 and IO Biotech Inc. which was down 31.77% to 4.21 at the close.
Oil price - Crude Oil market, Brent Oil market
Oil prices jumped to their highest levels since 2008 as the United States and European allies considered banning Russian oil imports while it looked less likely that Iranian crude would return swiftly to global markets. Brent rose $5.1, or 4.3%, to settle at $123.21 a barrel, and U.S. WTI rose $3.72, or 3.2%, to settle at $119.40 a barrel.
During the session, both benchmarks hit the highest since July 2008 with Brent hitting $139.13 a barrel and WTI $130.50. Global oil prices have spiked about 60% since the start of 2022, raising concerns about global economic growth and stagflation. China, the world's No. 2 economy, is targeting slower growth of 5.5% this year. On Sunday, U.S. Secretary of State said the United States and European allies were exploring banning imports of Russian oil.
The White House on Monday said President Joe Biden has not made a decision on a ban on Russian oil imports. Oil prices could climb to over $300 per barrel if the U.S and EU ban imports of oil from Russia, Deputy Prime Minister Novak said.
Precious and Base Metals - Gold price, Silver price, Palladium price
Gold slid from the key $2,000-mark today as investors paused to reassess the Russia-Ukraine conflict after talks hardly advanced, with a strong U.S dollar weighing further on the safe-haven metal. Spot gold was down 0.5% at $1,988.78 per ounce, after scaling a 1-1/2-year peak of $2,002.40 yesterday. U.S gold futures were down 0.2% to $1,992.40.
Holdings of the world's largest gold-backed exchange-traded fund, SPDR Gold Trust, rose 0.8% to 1,062.7 tonnes on Monday - their highest since March 2021. It's not simply a case of the West turning a switch and banning Russian imports. It's going to take a lot longer than that. So, markets are readjusting, absorbing all the information.
There's a little bit less demand for gold, but at the same time it's not really giving back its gains. Russian negotiators said they did not have positive developments to report following talks with Ukraine. The dollar index held close to a 21-month peak hit on Monday, making gold less attractive for holders of other currencies, following news of a potential U.S oil import ban on Russia.
Spot gold may retest a resistance at $1,999 per ounce, a break above could lead to a gain at $2,028, according to Reuters' technical analyst Wang Tao. Palladium was up 0.7% to $3,019.22 per ounce but was off an all-time high of $3,440.76 scaled on Monday.
The auto-catalyst metal prices have rocketed 80% this year to all-time highs as financial sanctions on Russia could disrupt shipments and worsen a supply shortage. Among other metals, spot silver fell 0.7% to $25.47 per ounce, while platinum rose 0.7% to $1,130.78.
Traditional Agricultures - Corn futures, Wheat futures, Soybean futures
Wheat futures gapped higher yesterday, notching a limit-up move as it neared an all-time high on concerns that global supply shipments will be disrupted until the Russia-Ukraine conflict is resolved.
European wheat has already hit record highs as deepening Western sanctions against Russia fueled concerns about exports from the Black Sea region. The two countries combined account for about 29 percent of wheat exports. Soybean futures ended slightly weaker after trading both sides of unchanged. Corn futures were weaker, easing from the 9-1/2-year high hit on Friday after some rains in key growing areas of South America.
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