Wall Street has slumped on Tuesday.Credit:AP
The bigger moves came from the markets for oil,agricultural commodities and government bonds. Oil has been a key concern because Russia is one of the world’s largest energy producers. The latest bump in prices increases pressure on persistently high inflation that threatens households around the world.
US benchmark crude oil jumped 8 per cent to $US103.41 per barrel,reaching the highest price since 2014. Brent crude,the international standard,surged 7.1 per cent to $US104.97.
Loading
The crisis in Ukraine prompted an extraordinary meeting of the International Energy Agency’s board,which resulted in all 31 member countries agreeing to release 60 million barrels of oil from their strategic reserves.
Russia’s invasion of Ukraine has also put more pressure on agricultural commodity prices,which were also already getting pushed higher with rising inflation. Wheat and corn prices rose more than 5 per cent per bushel and are already up more than 20 per cent so far this year. Ukraine is a key exporter of both crops.
Investors continued putting money into bonds. The yield on the 10-year Treasury fell sharply,sliding to 1.72 per cent from 1.83 per cent late Monday. It is now back to where it was in January. In February,it had crossed back above 2 per cent for the first time in over two years. The 10-year Treasury yield is used to set interest rates on mortgages and many other kinds of loans.
The conflict in Ukraine has shaken markets globally and added to worries about economic growth in the face of rising inflation and plans from central banks to raise interest rates. The US and its allies have been putting significant pressure on Russia’s financial system as that nation continues its push into Ukraine and its key cities.