Stocks recover, oil falls on Russia sanctions impact

Stock markets mostly rose and oil prices fell Wednesday as economic sanctions imposed on Moscow over the Russia-Ukraine crisis were deemed less harsh than expected.

Brent crude stood at $93.50 per barrel, having soared to a seven-year high of $99.50 Tuesday on fears of disruptions to key Russian oil supplies.

Other commodities have also hit multi-year peaks on fears of all-out war.

“Market mood is not cheerful but the softer-than-feared sanctions somewhat help,” SwissQuote analyst Ipek Ozkardeskaya noted Wednesday.

Trading floors remain on edge, with Ukraine mobilising its military reserve and urging its citizens to leave Russian territory as Moscow sharpened its demands, increasing fears of all-out war.

Russian President Vladimir Putin has defied an avalanche of international sanctions to put his forces on stand-by to occupy two rebel-held areas of eastern Ukraine.

Sanctions include moves against Russian banks, cutting the country off from Western financing by targeting Moscow’s sovereign debt, and penalising oligarchs and their families who are part of Putin’s inner circle.

US and allies including Britain have warned of further sanctions should Putin extended his country’s military grip beyond the two territories in the eastern Donbas region.

So far the sanctions were not as bad as markets had feared -- crucially with none aimed at Russia’s crude exports -- providing some much-needed breathing room for investors and halting the surge in oil prices that has seen both main contracts pile on more than 20 per cent so far this year.

Germany has though halted certification of the Nord Stream 2 gas pipeline from Russia.