The latest from London: Oil ban spooks investors

The S&P 500 fell by almost 3% for its biggest one-day decline since October 2020 yesterday, as investors fear the consequences of a ban on Russian oil – a sanction that has been discussed between US and European allies as a retaliation against Russia's invasion of Ukraine.

According to Capital Economics, such a move would push Brent to $160 a barrel. Yesterday, it reached $122, but went down by the end of the session after the German Chancellor dismissed this idea and said sanctions should be “sustainable over the long term”. The FTSE 100 fell 0.3%.

According to Reuters, Joe Biden is willing to go ahead with a U.S. ban on Russian oil imports even if European allies do not.

This morning, the London index was up 0.3%, lifted by financial stocks. High oil prices also support energy stocks.

One of the biggest gainers today is insurer M&G, which soared 12.5% after announcing a 500-million-pound buyback program.

Meanwhile, recruitment company Robert Walters climbed 5.9% after posting annual profits that quadrupled.

 

Things to read today:

US Spies See Grim Outlook with Russia and China Top Foes (Bloomberg)

Why oil prices may rise higher (Financial Times)

How Oil Giants Russian Bets, Made Over Years Crumbled In Days (WSJ)