Home » Business » Russia-Ukraine war, stock exchanges in red: lockdowns in China also weigh. Oil drops, alarm for Russian stop to grain exports

Russia-Ukraine war, stock exchanges in red: lockdowns in China also weigh. Oil drops, alarm for Russian stop to grain exports

The US warning to the China so help to Russia would have “implications” it had the immediate consequence of the collapse of the Chinese stock exchanges and had a negative impact on the other Asian markets. But the fear that the new ones also weighs heavily lockdown can impact on growth of the country and on request of the world’s largest oil importer, which caused crude oil to slide below 100 dollars a barrel. European markets also opened in red and accelerated to the downside during the session. In Milan Moncler and Tenaris suffer but also Unicredit that according to what the CEO said Andrea Orcel during a conference organized by Morgan Stanley is considering exiting its operations in Russia as part of an “urgent business review”.

The price of oil during the day is continuing to decline: the WTI crude for April delivery is trading at $ 97.35 with a drop of 5.49%, Brent for delivery in May changed hands at $ 100.88 with a decrease of 5.63%. This decline also incorporates the faint hopes of progress in the negotiations for a ceasefire in Ukraine. Nor is he saved from the climate of mistrust They (-1.4% to $ 1,933 an ounce) while the yield of US treasuries is down slightly to 2.11%.

Staying on raw materials, the impact of the Russian invasion also poses risks for the global supply of food goods as do Alexander Monk, Felix Odey and Mark Lacey, the asset manager’s portfolio manager Schroders. “There has been much discussion about Russia’s role as an oil and gas exporter, but its status as a major producer of agricultural commodities also implies a real risk of food shortages“, Is their analysis. “Russia and Ukraine together account for 30% of world grain exports. Consequently, the disruption wheat exports will have clear implications for consumers in terms of both availability and price. Emerging markets in particular will be affected as they are traditionally the most important recipients of Russian wheat. In recent years, the three largest importers of Russian wheat have been Egypt, Turkey and Bangladesh “.

Moscow has announced in the past few hours the limitation of grain exports to several former Soviet republics, of which it is one of the main exporters, “in order to avoid shortages and an explosion in prices” according to the press service of the Russian government. The Union regroups Russia, Kazakhstan, Belarus, Armenia and Kyrgyzstan. Deputy Prime Minister Victoria Abramchenko also announced a halt to the export of sugar, corn and other grains such as rye and barley until June 30.

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