# Stocks extend sell-off as U.S. warns of imminent Russian invasion of Ukraine Author: Pal Sinha, Barnali Author URL: https://financedigest.com/author/pal-sinha-barnali Published: 2022-02-24 Category: TRADING Category URL: https://financedigest.com/category/trading Meta Title: Global Stocks Dive as Fears of Russian Invasion Grow Meta Description: Stay informed on the latest market turmoil as fears of Russian invasion of Ukraine escalate, impacting global stocks, currencies, oil prices and more. URL: https://financedigest.com/stocks-extend-sell-off-as-u-s-warns-of-imminent-russian-invasion-of-ukrainehtml ![undefined](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/2022-02-24t020220z2lynxmpei1n027rtroptp4global-markets-1736816172749-compressed.jpg) By Andrew Galbraith SHANGHAI (Reuters) – Global stocks extended a sell-off, the yen strengthened, and U.S. Treasury [prices rose on Thursday as investors sought shelter in safe-haven assets amid growing fears](https://www.financedigest.com/oil-prices-rise-on-u-s-drawdown-chinese-fears-weigh.html "Oil prices rise on U.S. drawdown, Chinese fears weigh") of a full-scale Russian invasion of Ukraine. As one of the [worst post-Cold War security crises in Europe](https://www.financedigest.com/europe-facing-its-worst-drought-in-500-years-study.html "Europe facing its worst drought in 500 years – study") for decades worsens, U.S. Secretary of State Antony Blinken said he believes [Russia will invade Ukraine](https://www.financedigest.com/russia-promises-to-scale-down-operations-in-northern-ukraine.html "Russia promises to scale down operations in northern Ukraine") within hours after separatists on Wednesday asked for Moscow’s help to repel “aggression” and as explosions rocked the breakaway eastern city of Donetsk. The [crisis deepened](https://www.financedigest.com/europe-burns-cash-to-help-businesses-in-deepening-energy-crisis.html "Europe burns cash to help businesses in deepening energy crisis") this week after Russian President Vladimir Putin dispatched troops into parts of Ukraine, triggering sanctions from Western countries. Asset markets have seen a sharp increase in volatility, with [oil racing to near](https://www.financedigest.com/oil-near-flat-as-us-crude-stock-draw-contends-with-economic-concerns.html "Oil near flat as US crude stock draw contends with economic concerns") $100 per barrel and the Cboe Volatility Index, known as Wall Street’s fear gauge, up more than 55% over the past nine days. Overnight, U.S. stocks took a beating, with the Dow Jones [Industrial Average](https://www.financedigest.com/average-annual-uk-grocery-bill-highest-since-at-least-2008-industry-data.html "Average annual UK grocery bill highest since at least 2008 -industry data") down 1.38% to barely above the level that would have confirmed a correction. The MSCI World Index, a leading gauge of [equity markets globally](https://www.financedigest.com/rate-rise-fears-prompt-third-week-of-global-equity-funds-outflows.html "Rate rise fears prompt third week of global equity funds outflows"), skidded to its lowest level since April 2021. In Asia on Thursday, the selloff showed no [signs of abating](https://www.financedigest.com/landlords-reliance-on-liverpool-to-deliver-high-yields-shows-no-sign-of-abating.html "Landlords’ reliance on Liverpool to deliver high yields shows no sign of abating   "). MSCI’s broadest index of Asia-Pacific [shares outside Japan fell 1.0% in early trade](https://www.financedigest.com/social-trading-is-the-new-way-that-gen-z-are-getting-their-share-of-the-pie.html "Social Trading is The New Way That Gen Z Are Getting Their Share of The Pie"), with Australian shares diving 2.67%. In Tokyo, the Nikkei was 1% lower. Chinese [blue chips](https://www.financedigest.com/siemens-energy-to-rejoin-germanys-blue-chip-dax-hellofresh-to-exit.html "Siemens Energy to rejoin Germany’s blue-chip DAX, HelloFresh to exit") fell 0.5% [Investors have also been grappling with the prospect of imminent policy](https://www.financedigest.com/its-a-book-of-investor-beliefs-and-corporate-climate-policies.html "It’s a book of Investor beliefs and corporate climate policies") tightening by the U.S. Federal Reserve aimed at combating [surging inflation](https://www.financedigest.com/boes-bailey-speaks-about-surging-inflation-and-rate-hikes.html "BoE’s Bailey speaks about surging inflation and rate hikes"). A [supply shock to commodities and the need for a higher geopolitical risk premium though may mean inflation remains elevated for longer with the risk the hiking](https://www.financedigest.com/oil-gains-as-russian-supply-cuts-temper-concerns-over-rate-hikes-high-stocks.html "Oil gains as Russian supply cuts temper concerns over rate hikes, high stocks") cycle may need to be steeper,” said Tapas Strickland, director of economics at National Australia Bank. While expectations of an aggressive 50-basis-point hike at the Fed’s March meeting have eased, [Fed funds futures continue to point to at least six rate](https://www.financedigest.com/fed-rates-up-boe-up-ecb-up-stocks-up.html "Fed rates up, BoE up, ECB up, stocks up") hikes this year. \[FEDWATCH\] On Thursday, the benchmark U.S. 10-year yield rose to 1.9581% compared with its U.S. close of 1.977% on Wednesday. The [global flight to safety boosted](https://www.financedigest.com/optical-satellite-communication-market-emerging-trends-to-boost-the-global-revenue-growth-discussed-in-a-new-market-research-report-by-tmr.html "Optical Satellite Communication Market – Emerging Trends to Boost the Global Revenue Growth Discussed in a New Market Research Report by TMR") the yen, with the dollar dropping 0.05% to 114.91. The [euro was down 0.2% on the day at $1.1281 and the dollar](https://www.financedigest.com/dollar-trims-gains-vs-euro-after-u-s-inflation-data.html "Dollar trims gains vs euro after U.S. inflation data") index, which tracks the greenback against a basket of currencies of other major trading partners, was up at 96.344. The [Russian rouble firmed](https://www.financedigest.com/pizza-firm-dp-eurasia-delivers-profit-rise-evaluating-russian-business.html "Pizza firm DP Eurasia delivers profit rise, evaluating Russian business") slightly by 0.55% against the dollar after falling more than 3% on Wednesday. [“Markets are now more adequately pricing in the risk](https://www.financedigest.com/markets-pricing-some-geopolitics-but-risk-premia-can-grow-further-goldman.html "Markets pricing some geopolitics, but risk premia can grow further -Goldman") of something horrific happening. That combined with the uncertainty is a horrible environment to be in. No one wants risk exposure when that’s floating around,” said Rob Carnell, head of [Asia Pacific](https://www.financedigest.com/allianz-trade-wins-global-banking-finance-reviews-best-trade-credit-insurance-company-asia-pacific-2022.html "Allianz Trade wins Global Banking & Finance Review’s Best Trade Credit Insurance Company Asia Pacific 2022") research at ING. U.S. crude ticked up 1.01% to $93.03 a barrel. Brent crude also rose about 1%, to $97.7 per barrel. Spot gold [traded about 0.1% higher](https://www.financedigest.com/global-stocks-trade-higher-at-the-end-of-a-volatile-month.html "Global stocks trade higher at the end of a volatile month") at $1,911.86 per ounce. \[GOL/\] (Additional reporting by Alun John in [Hong Kong; Editing by Shri Navaratnam)](https://www.financedigest.com/screening-of-winnie-the-pooh-horror-film-cancelled-in-hong-kong.html "Screening of ‘Winnie the Pooh’ horror film cancelled in Hong Kong") --- This blog is powered by Superblog. Visit https://superblog.ai to know more. ---