Kevin Buckland

TOKYO (Reuters – U.S. Equity futures dropped with the Euro, while safe-haven dollars and yen were in high demand Monday following new sanctions imposed by Western countries on Russia after its invasion Ukraine. These included the blocking of some banks from the SWIFT international payment system.

U.S. Treasury futures on the 10-year term rose a full-point, and the Russian rouble was as much or more weaker at a new low of around 112 for each dollar.

After Russian President Vladimir Putin placed nuclear-armed forces in high alert Sunday as part of his fourth largest attack on an EU state since World War Two, the fall in the ruble was inevitable.

However, Asia-Pacific stocks markets performed better in early trade. Australia’s benchmark saw a rise of 0.39%, while New Zealand’s was up by 0.74%.

It was the result of Wall Street gains that began Friday and closed at 2.51%. Kyle Rodda (a market analyst at IG Australia) said this.

U.S. Stock Futures however pointed to a 2.3% drop at restart.

Rodda explained that there was a “deluge” of information during the weekend.

My sense is that there won’t be any staying power behind the particular move in Asia-Pacific stocks, considering financial stability risks and adding on that threat of nuclear warfare.

The FX Market seems to be the most reliable indicator (of market sentiment) right now.

The euro dropped 0.9% at $1.1165, and 0.85% to 129.5 yen. Meanwhile, the more risk-sensitive Australian dollar and New Zealand dollar fell 0.76%, and 0.85% respectively.