- Stocks in the United States fell on concerns that rising energy costs would stifle global economic growth. The dollar extended its gains, while the yield curve flattened dramatically.
- The S&P 500 fell 3% for its worst day since October 2020, while the Nasdaq 100 fell 3.7%. The Euro Stoxx 50 and Germany's Dax index both closed in the red. The spread between two-year and 10-year treasuries dipped below 20 basis points, a level not seen since march 2020 and a bearish sign for the economy.
- Brent crude rose to as high as $139 per barrel on the prospect of a ban on Russian supplies, before falling back to around $125. West Texas Intermediate was trading around $120. European gas, palladium, and copper have all reached all-time highs.
- The Biden administration is debating whether to prohibit the import of Russian oil and energy products, a move that could exacerbate economic pressure as more companies leave the country in response to Moscow's invasion of Ukraine. The European Union's governments were divided on whether to join the United States.
- The US bond market's 10-year inflation forecast in the United States has risen to a record 2.785%, while the yield on the benchmark Treasury bond has risen 5 basis points to 1.77%. A dollar index rose for the third day in a row, reaching its highest level since 2020.
- New discussions The government in Kyiv said that talks between Ukrainian and Russian officials on Monday made only limited progress toward negotiating a cease-fire. The Russian negotiators made no immediate statement. With President Putin stating that if fighting is to end, Kyiv must agree to his demands, the talks face significant challenges.
- Putin signed a decree allowing the government and businesses to pay foreign creditors in rubles, in an effort to avoid defaults while capital controls remain in place. Nonetheless, some holders of a $1.3 billion Gazprom PJSC bond due Monday reported receiving payment in dollars.
- Due to the pandemic, the global economy was already dealing with high inflation. The Federal Reserve and other key central banks are now faced with the difficult task of tightening monetary policy in order to contain the cost of living without disrupting economic expansion or roiling risky assets.
