The Courier & Advertiser (Angus and Dundee)

Markets fall as Nato fails to see evidence of Russian withdrawal

-

Markets woke up with cynicism towards the Kremlin’s claims that it is moving troops back from the border with Ukraine.

Yesterday the FTSE 100 dropped, while oil rose above 95 dollars per barrel amid continuing tensions along the border.

Markets had risen on Tuesday after statements from Moscow that seemed to imply a de-escalation on the border.

But a day later there was no clear evidence that the Kremlin was living up to its words.

“So far we do not see any sign of de-escalation on the ground, nor withdrawal­s of troops or equipment,” Nato secretary-general Jens Stoltenber­g said yesterday.

“This may of course change, however what we see today is that Russia maintains a massive invasion force ready to attack.”

Markets spent most of the day in the red, and the FTSE 100 closed the day down 0.1% to 7,603.78, a drop of 5.14 points after having recovered most of its losses.

In Frankfurt the Dax closed down 0.3% while the Cac 40 in Paris lost 0.2%.

In the US the S&P 500 and Dow Jones indexes had both dropped 0.6% shortly before markets in Europe closed.

On currency markets one pound would buy 1.3578 dollars, a 0.01% drop, or 1.1943 euros, down 0.04%.

“Hopes have begun to fade that Russia is pulling back troops in any meaningful manoeuvre, casting fresh clouds over financial markets,” said Susannah Streeter, senior investment and markets analyst at Hargreaves Lansdown.

“It has meant that the brief backtracki­ng in the upwards sprint in the price of oil hasn’t lasted long.”

As markets were preparing to close in Europe, the price of Brent crude oil had risen 2.8% to 95.90 dollars per barrel.

“With global demand rising amid lower production the risk is that supply could become even tighter if sanctions are imposed on Russia,” Ms Streeter said.

“Although higher fuel prices are the last cost many companies need right now, the resumption of the oil price rally is helping energy majors gain ground.”

“The risk is that supply could become even tighter

Newspapers in English

Newspapers from United Kingdom