- As US President Biden joined allies in launching a fresh round of sanctions against Russia after his counterpart Putin recognized two separatist republics in eastern Ukraine and ordered soldiers to be dispatched there, US equities plummeted, entering correction territory.
- As investors considered the possible harm from sanctions targeting Russia's leadership and sovereign debt overseas, the S&P 500 fell 1% on Tuesday, down 10% from its January peak. Unless Putin reverses direction, the EU and the UK have indicated that they are prepared to apply additional sanctions. The Russian president, on the other hand, has rejected any preparations to attack Ukraine.
- The currency remained unchanged, as benchmark Treasury yields drifted at 1.93%. The Stoxx 600 index plummeted as much as 2% in European trading before recovering its losses.
- Biden claimed the US was working closely with Germany to put a stop to the Nord Stream 2 pipeline, which had sent European natural gas futures up 11% earlier in the session. He also stated that the administration was keeping a tight eye on energy as the prospect of supply disruptions had kept oil prices high. WTI crude was hovering around $92 a barrel.
- Investors have already reduced their wagers on how forcefully the Federal Reserve would tighten monetary policy this year to combat inflation due to geopolitical risks.
- Manufacturing and Services Markit PMI data exceeded expectations, implying that the omicron variety is to blame for current growth concerns. Consumer confidence in the US, on the other hand, has dropped to its lowest level since September.
