- Asian stocks plunge on a fresh wave of risk-aversion post the ban consideration on Russian oil imports.
- Boiling oil prices are set to bring a fresh impulse wave in inflation numbers.
- US CPI numbers will decorate the economic calendar this week.
Markets in the Asian domain have witnessed a bloodbath on Monday following the escalation of military activity in Ukraine during the weekend. Asian markets are going through a broad-based selling from the market participants.
At the press time, Japan’s Nikkei 225 plunges 3%, China A50 drops almost 2.7%, Hong Kong’s Hang Seng tumbles 3.5% and India’s Nifty50 cracked 3%.
Investors are gung-ho on the safe-haven assets and a firmer rally is seen across the defensives. Gold prices kiss $2,000 while the US dollar index (DXY) surpasses 99.00. Along with them, the 10-year US Treasury yields drop near 1.7%.
Asian stocks felt significant selling pressure since the opening tick on Monday as oil prices soared after US President Joe Biden considered a prohibition of Russian oil imports. The latter is in discussions with the Western allies at the prospect of banning the import of Russian oil in a coordinated way along with a stipulation of appropriate global oil supply.
US President Joe Biden has considered a ban on Russian oil imports in the US without the participation of allies in Europe, at least initially, as per Bloomberg. The move is likely to be followed by other nations soon, which may spurt the inflation levels to the rooftop. The war between Russia and Ukraine may not find a pause soon and markets are expected to remain on their toes till then.
Apart from the Russia-Ukraine headlines, investors will also focus on US Consumer Price Index (CPI) numbers, which are due on Thursday.