Rolling coverage of the latest economic and financial newsOil prices soar 10% and stocks plunge as US and Europe consider ban on Russian crudeRussia’s economy is under siege, but will the west break first?Russia-Ukraine war: Zelenskiy vows to punish attack on civilians in Irpin; Russia bombards Mykolaiv – liveGood morning, and welcome to our rolling coverage of the world economy, the financial markets, the eurozone and business.Global financial markets are set for another day of turbulence as the war in Ukraine drives up the oil price towards record levels and threatens a stagflationary shock to Europe’s economy.Equities seem to be having an “Oh (pick your expletive)” moment, as the US reportedly weighs an embargo on Russian oil that could strangle global growth, fuel inflation and accelerate the trend to a more multipolar world.Of course, this doesn’t have to come to fruition – sentiment improved this afternoon on reports that the path forward an embargo is “uncertain”. On top of that, the move, which would cripple the Russian economy, could in theory force a backdown from the Russians, and could open the door to a diplomatic solution that could see an end to war, even if that means some ugly land concessions to the Russians from Ukraine. But given the one eyed focus by Putin on toppling the Ukrainian government, it seems more likely this war will drag on, all at the expense of global growth and price stability.Commodity prices are soaring, in a mix that’s undoubtedly going to stoke big, scary headlines about stagflation going forward. And that’s not entirely unjustified, given the risk Europe slips into recession if the conflict drags-on, and as food and energy insecurity becomes more wide spreadThere are growing signs in the financial markets that the fallout from sanctions on Russia following its invasion of Ukraine is spreading, with Europe in particular beginning to show contagion. Continue reading…
Rolling coverage of the latest economic and financial news
- Oil prices soar 10% and stocks plunge as US and Europe consider ban on Russian crude
- Russia’s economy is under siege, but will the west break first?
- Russia-Ukraine war: Zelenskiy vows to punish attack on civilians in Irpin; Russia bombards Mykolaiv – live
Good morning, and welcome to our rolling coverage of the world economy, the financial markets, the eurozone and business.
Global financial markets are set for another day of turbulence as the war in Ukraine drives up the oil price towards record levels and threatens a stagflationary shock to Europe’s economy.
Equities seem to be having an “Oh (pick your expletive)” moment, as the US reportedly weighs an embargo on Russian oil that could strangle global growth, fuel inflation and accelerate the trend to a more multipolar world.
Of course, this doesn’t have to come to fruition – sentiment improved this afternoon on reports that the path forward an embargo is “uncertain”. On top of that, the move, which would cripple the Russian economy, could in theory force a backdown from the Russians, and could open the door to a diplomatic solution that could see an end to war, even if that means some ugly land concessions to the Russians from Ukraine. But given the one eyed focus by Putin on toppling the Ukrainian government, it seems more likely this war will drag on, all at the expense of global growth and price stability.
Commodity prices are soaring, in a mix that’s undoubtedly going to stoke big, scary headlines about stagflation going forward. And that’s not entirely unjustified, given the risk Europe slips into recession if the conflict drags-on, and as food and energy insecurity becomes more wide spread
There are growing signs in the financial markets that the fallout from sanctions on Russia following its invasion of Ukraine is spreading, with Europe in particular beginning to show contagion.