Equities Dipped, Crude Oil Rose Amid Tensions Over Russia-Ukraine War

Asian equities are mixed Tuesday while crude oil inched up as traders are weighing prospect of tougher sanctions against Russia for alleged war crimes in Ukraine.

Equities in South Korea and Japan both counting losses while MSCI Broad Market Asian Index ex Japan is training higher by 1.40%. Mainland China and Hong Kong remains closed due to national holiday.

The market continuing to be shaped by developments of the war as well as tightening of the monetary policy stroked by higher inflation. The Fed minutes on Wednesday will give guidance on expected hike in rate for the rest of the year.

“Between now and June we’re going to get a lot of information the market has to price in,” Subadra Rajappa, head of U.S. rates strategy at Societe Generale SA, said on Bloomberg Television as reported by Bloomberg.

“In that sort of context, the bias is potentially towards higher yields and flatter curves.”

U.S. have put restriction on dollar debt payments from Russian government accounts at U.S. financial institutions, according to Bloomberg citing people familiar with the matter. This leaves Russia with the option to drain its dollar reserves or go default, according to Bloomberg.

Commodities including oil advanced on renewed fears about supply disruptions stemming from the war. U.S. WTI is trading around $104 a barrel while Brent is trading around $109 a barrel.