The impact of aggressive sanctions on Russia acting to attack Ukraine continues to put pressure on stocks in Europe and Wall Street.
In addition, it pushed oil to US $ 100 a barrel while German bonds entered an upward rally.
Injured Stocks
Major stock indices in Germany, France, Italy and Spain closed lower over 3% while the pan-European STOXX 600 index was down 2.4%.
The Russian equity market remained suspended and some of its bonds showed no movement.
The MSCI worldwide index was down 1.35%.
Meanwhile, the major Dow Jones Industrial, S&P 500 and Nasdaq indices closed lower around 1.5% while the US and European banking indices fell for 2 consecutive days at 5.6%.
German 10-year treasury yields returned to negative territory for the first time since January and the U.S. treasury fell to a 5-week low, moving inversely to bond yields, boosting safe-haven purchases.
10 -year treasury notes yields fell 11.8 points at 1.7207% while German bonds fell 2.2 basis points at -0091%.
Investors are now questioning the impact of sanctions on Russia on the global growth crisis and inflation.
Tom Simons, a money market economist at Jefferies New York, said if Russia continued to control food and energy production capacity in Ukraine, it would cause the prices of such goods to become more expensive and the effects would be felt in the long run.
The dollar was up 8.9% against the Russian ruble and US gold futures were up 2.3% at $ 1,943.80 an ounce.
The euro has plunged lower against the dollar since June 2020, with the dollar index which measures a number of other currencies jumping 0.65%.
Exploding Oil Commodities
Oil prices ‘exploded’ by more than 10% as talks on adjusted global production of crude oil inventories failed to allay concerns about supply disruptions.
U.S. crude futures jumped $ 7.60 at $ 103.41 a barrel while Brent oil rose $ 104.97 and European natural gas hit 29%.
