Stocks Shed Loss, Oil Climbed as Russia Order Troops to Breakaway Regions in Ukraine

Stock dropped significantly after Russian President Vladimir Putin ordered troops in to breakaway regions of eastern Ukraine.

President Vladimir Putin recognized two self-proclaimed separatist republics in eastern Ukraine and ordered the Defense Ministry to send what he called “peacekeeping forces” to the breakaway regions.

The U.S. and Europe condemned the latest moves. The Biden administration has warned Russia’s troop buildup near Ukraine signals a possible invasion, something the Kremlin has repeatedly denied.

But it was not immediately clear whether the Russian military action would be regarded by the West as the start of a full-scale invasion.

Meanwhile Asian stocks dropped significantly with CSI 300, HSI, KOSPI and TOPIX down by 1.73%, 2.26%, 1.61% and 1.69% respectively. The MSCI Broad Market Index ex Japan dropped by 0.39%.

“It’s very difficult to assess risk-rewards in the current environment,” said Damien McColough, head of fixed income research at Westpac Banking Corp, as reported by Bloomberg.

“The Putin recognition of the separatists has added a new dimension that gets us even more concerned that an invasion will happen.”

Crude oil inched up sharply from previous session with WTI up by 3.22% to $94.00 per barrel while Brent is up by 1.87% to $97.18 per barrel.