Asian markets and US stock futures saw a modest recovery on Wednesday, hours after the US announced that First set of penalties Against Russia over what US President Joe Biden called “the beginning of the Russian invasion” of Ukraine.
Hang Seng in Hong Kong
(HSI) The index rose 0.6% in morning trading after that It fell 2.8% on Tuesday -— Her biggest daily loss in five months. China’s Shanghai Composite rose 0.4%, while South Korea’s Kospi was flat. Both indices fell about 1% on Tuesday.
The Japanese stock market was closed on Wednesday for a holiday.
The slight recovery in Asian markets followed modest gains in US stock futures. Dow futures rose 77 points, or 0.2%. S&P 500 and Nasdaq futures rose 0.3% and 0.4%, respectively.
Oil prices were a little higher. US crude futures rose 0.2% to $92.09 a barrel, while Brent crude rose 0.3% to $97.08 a barrel.
Biden offered on Tuesday what he called The “first tranche” of US sanctions Against Russia, including two financial institutions, Russian sovereign debt, Russian elites and their family members.
“This is the beginning of an invasion, and thus this is the beginning of our response,” A senior official in the US administration said. “If Putin continues to escalate, we will further escalate using both financial sanctions and export controls, which we haven’t revealed yet.”
Other Western countries have also announced retaliatory measures against Russia, with Germany on Tuesday halting ratification of the controversial order Nord Stream 2 . pipeline Which will transport natural gas from Russia to Germany.
“Punitive measures on Russia may be seen as less aggressive than anticipated, and some forecasts point to a standstill for the time being,” Yeap Jun Rong, a market analyst in Singapore for IG Group, wrote in a research note on Wednesday.
He noted that the “most severe” impact of the sanctions could come from the sovereign debt sanctions, which effectively cut off Russia from Western financing. But other sanctions on state-owned banks and Russian elites appear to be considered “relatively modest” by the markets.
“However, the situation remains highly volatile and uncertain, and any negative news flow could potentially disrupt markets,” Yip added.
Wednesday’s rally was in sharp contrast to the previous trading day, when Global stock markets fell Crude oil prices soared to $99 a barrel after Russia ordered its forces into parts of eastern Ukraine. The Dow closed nearly 483 points, or 1.4%. The S&P 500 finished the day 1% lower, and entered a correction – defined by a 10% drop from its recent high. The Nasdaq index fell 1.2 percent.
CNN’s Kevin Liptak contributed to this report.