Stocks slid Monday and crude oil extended a rally as geopolitical risks over Ukraine rippled through global markets, spurring demand for havens such as sovereign debt. An Asia-Pacific equity index fell over 1%, with markets from Japan to China and Hong Kong — which is grappling with a Covid outbreak — in the red.
Energy stocks bucked the trend, climbing as oil added to an eight-week winning run. S&P 500 and Nasdaq 100 futures wavered after sharp Wall Street losses Friday. Treasuries pared gains from the end of last week, while bonds in Australia and New Zealand rose.
A gauge of the dollar was steady. Tensions over Russia’s military buildup near Ukraine are entering a potentially decisive week, with the U.S. warning an invasion may be imminent and President Vladimir Putin accusing America of failing to meet his demands. Russia has repeatedly denied it plans to invade its neighbor, and a diplomatic push to try to resolve the situation is continuing.
The uncertainty is dealing another blow to markets that are already skittish about high inflation and the prospect of aggressive Federal Reserve interest-rate hikes to tame it. A deterioration in Ukraine could stoke concerns about price pressures if it disrupts Russian energy and Ukrainian grain supplies.
