There were fears about Russia’s invasion of Ukraine and the sanctions that followed. Brent crude oil prices fell 13% to $111 per barrel on Wednesday.
At the same time, the price of West Texas Intermediate crude dropped by 12 percent to $109 a barrel. Natural gas recovered from mid-day losses to end the day at the same price.
Oil prices were pushed down by news that the United Arab Emirates wants to increase oil production and is going to push OPEC for more oil, Reuters said. Ukraine’s president also told the German newspaper Bild on Wednesday that compromises can be made, but they shouldn’t be a betrayal of his country. This gives some hope that the conflict could be over.
However, Russian airstrikes hit a maternity ward in the Ukrainian city of Mariupol, and the Kremlin’s forces kept trying to encircle the Ukrainian capital, Kyiv. This shows that the two sides may still be far from an agreement.
Investments and Crypto Rose
Investors in stocks were happy on Wednesday when the Dow Jones Industrial Average soared 653 points to 33,286, a sign that war-related declines were over. A lot of people bought riskier stocks that had lost money in the last few weeks, so the S&P 500 and the Nasdaq both rose 2.5% and 3.6%.
Salesforce and American Express both gained over 5% on the day, leading their Dow. Energy corporations like Chevron, Phillips 66, and Exxon were among the greatest stock market losers when oil prices fell.
She told CNBC that the stock market is still paying attention to changes in the prices of things like oil. When (oil) prices fall, trading will become more volatile and rise.
German stocks rose 7.9 percent, and the EURO STOXX 50 index rose 7.44 percent. This was the biggest rise since March 2020 when the pandemic came to an end, and it was the best since then.
Traders are no longer fleeing and are returning to value, says FHN Financials’ chief economist Chris Low. That doesn’t mean that the volatility is over, but it doesn’t mean that it is. Macro and microeconomic effects are still in flux, and they could change at any time.
On Wednesday, the price of Bitcoin went up about 8%, and the price of Ethereum went up about 5%.
Trending Down Russua-Ukraine Merchandise
Bloomberg’s commodity index dropped 5.1% on Wednesday after a month of strong gains because of the Russia-Ukraine conflict. A excellent indication of commodities prices, the index has risen over 20% in the past 30 days.
Silver and platinum also fell in price by 3% as well as 6.3%, respectively. Gold prices also dropped 2.15 percent to end the day just below $2,000 for every troy ounce.
Wheat dropped 6.6% on the day, easing worries of a scarcity due to Russia’s invasion of Ukraine. Corn, sugar, and wood products prices also tumbled on Wednesday, which led other commodities down.
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