Global Markets React to U.S. Sanctions on Russian Oil
MANILA, Philippines – On Thursday, global stock markets displayed mixed results following a downturn on Wall Street. Meanwhile, oil prices surged by over $2 after U.S. President Donald Trump imposed sanctions on major Russian oil companies.
Impact of Sanctions on Russia
The sanctions targeting Rosneft and Lukoil aim to pressure Russian President Vladimir Putin into negotiations to halt the ongoing conflict in Ukraine.
European Union’s Strategic Moves
On the same day, EU leaders convened to discuss further sanctions against Russia. They are also considering using frozen Russian assets in Europe to support Ukraine’s economy and military efforts for the next two years.
Oil Prices and Market Futures
U.S. benchmark crude oil increased by $2.70, reaching $61.21 per barrel, while Brent crude rose by $2.85 to $65.44 per barrel. The S&P 500 futures saw a slight increase of 0.1%, whereas the Dow Jones Industrial Average futures dipped by 0.1%.
European and Asian Market Trends
In Europe, Germany’s DAX fell by 0.3% to 24,083.89. The FTSE 100 in the UK gained 0.1% to 9,527.33, and France’s CAC 40 climbed 0.4% to 8,238.47.
In Asia, Chinese stocks rebounded as Beijing concluded a significant Communist Party meeting that will shape the next five years. Hong Kong’s Hang Seng index rose 0.7% to 25,967.98, and the Shanghai Composite index increased by 0.2% to 3,922.41 amid reports of potential U.S. export restrictions to China.
Japan and South Korea Market Updates
Japan’s Nikkei 225 dropped by nearly 1.4% to 48,641.61, influenced by news that Prime Minister Sanae Takaichi is planning a stimulus package exceeding last year’s 14 trillion yen (approximately $92 billion). SoftBank Group’s shares fell over 4% after announcing plans to fund AI investments through bonds.
In South Korea, the Kospi index decreased by 1% to 3,845.56, as investors remained cautious due to slow progress in trade talks with the U.S.
Other Asian Markets
Australia’s S&P/ASX 200 saw a marginal increase of less than 0.1% to 9,032.80. Taiwan’s Taiex fell by 0.4%, while India’s BSE Sensex rose by 0.6%.
U.S. Market Performance
On Wednesday, the S&P 500 declined by 0.5%, and the Dow Jones Industrial Average fell by 0.7% from its previous record. The Nasdaq composite also dropped by 0.9%.
Netflix contributed to the market’s decline after reporting lower-than-expected profits for the latest quarter. The pressure is on companies to demonstrate strong profit growth to justify their high stock valuations.
Financial Sector Highlights
Capital One Financial saw a 1.5% increase, and Western Alliance Bancorp rose by 3.2% after surpassing profit expectations. Western Alliance’s report was particularly reassuring after it had previously shaken confidence in the banking sector.
Meme Stocks and Gold Prices
Beyond Meat experienced a volatile session, initially surging by 112% before closing down 1.1%. Despite this, it remains up 454.5% for the week, driven by meme-stock enthusiasm.
The company is a significant holding in the Roundhill Meme Stock ETF, which focuses on stocks with high investor momentum.
Gold prices rebounded by 1.6% to $4,131.80 after a two-day decline from record highs.
Currency Movements
The euro weakened slightly, falling to $1.1595 from $1.1610.
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