Wheat prices climb to highest since 2008; stocks calmer after Wall Street gains – live business | Business
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Yesterday we woke up to the grim news that Russia had invaded Ukraine. Today we expect a Russian tank attack on its capital, Kiev, which could become the most difficult day of the war, said an adviser to the Ukrainian interior minister.
Russian troops are advancing on Kiev and Ukrainian President Volodymyr Zelenskiy has pleaded with the international community to do more, saying the sanctions announced so far are not enough. An estimated 100,000 people fled as explosions and gunfire rocked major cities, and dozens were reportedly killed, according to Reuters.
You can follow the latest news on our Ukraine live blog here:
Ukrainian officials are angry that European leaders have refrained from imposing the potentially most damaging sanction on Russia, blocking Russia from an international payment system through which it receives foreign currency.
However, other new sanctions have been imposed by the United Kingdom, the United States, the European Union and other countries.
The UK has frozen assets and imposed a travel ban on eight named individuals and 11 companies, including six banks. Hundreds of other people sitting in the Russian Dumas will also face sanctions.
Michael Hewson, chief market analyst at CMC Markets UK, said:
Although the sanctions to be imposed are significantly larger in scale than those previously announced, they are unlikely to be enough to change Putin’s calculus in the short term, given that Russian energy markets, as well as other key exports, and access to Swift have been left out.
This perhaps helps explain why US markets reversed course after European markets closed, only to end the day sharply higher, with the Nasdaq 100 leading the way with a gain of more than 3%, just hours after fell 3% shortly after the market opened. .
Yesterday’s oil price spike to $105 a barrel also proved to be short-lived as prices fell after it became clear the Russian energy export sanction was not no longer considered at this time, although prices are still high, with Brent crude back above $100 a barrel, while agricultural commodities like corn and wheat also continued their ascent.
Asian stocks mostly rebounded from the previous day’s losses: Japan’s Nikkei closed nearly 2% higher while South Korea’s Kospi rose 1% and Hong Kong’s Hang Seng fell 0.5%. European markets should open higher after yesterday’s heavy losses.
As stock markets seem calmer, wheat price reached their highest level since 2008, threatening to drive up food prices. Ukraine is a major wheat exporter and is known as the breadbasket of Europe. Together, Russia and Ukraine account for a third of the world‘s wheat supply.
Chicago wheat futures rose 2.8% to $9.6075 a bushel at the start of Asian trading, after hitting the maximum allowed by the exchange yesterday, while corn and soybeans also rose. increased, Bloomberg reported. Corn rose 1.2% to $6.9825 a bushel, and soybeans rose 0.8%.
Crude oil is trading at $101.98 a barrel, up 2.9%, after touching $105 for the first time since August 2014 yesterday. US light crude was up 2.6% at $95.21 a barrel.
Golda safe-haven investment, continues to climb, rising 0.7% to $1,916 an ounce.
The Russian ruble rallied somewhat after hitting a record low of 89.60 against the dollar yesterday. It rose almost 2% to 83.60.
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