Wall Street falls as Ukraine crisis escalates; ASX set for gains

Stocks are recovering after an early tumble in afternoon trading on Wall Street on Tuesday in New York as tensions escalated in Ukraine over Russia’s decision to send forces into that nation’s eastern regions.

The S&P 500 is 0.7 per cent lower in early afternoon trade, the Dow Jones has shed 1 per cent and the Nasdaq has lost 0.5 per cent. The Australian sharemarket is set to open higher, with futures at 7am AEDT pointing to a gain of 19 points, or 0.3 per cent, at the open. The ASX fell by 1 per cent on Tuesday.

Major indexes are in a three-day slide as investors closely watch the crisis in Ukraine. The White House is referring to Russian troop deployments in eastern Ukraine as an “invasion” after initially hesitating to use the term. That’s a red line that President Joe Biden said would result in the US levying severe sanctions against Moscow.

Russia’s recognition of the independence of several regions in Eastern Ukraine and decision to send in forces has raised fears that a full-scale invasion is near.

The crisis in Ukraine has made for volatile energy prices over the last few weeks and US crude oil prices are up 2.1 per cent on Tuesday. Russia is a major energy producer and a military conflict could disrupt energy supplies. Germany has withdrawn a key document needed for certification of the Nord Stream 2 gas pipeline from Russia.

European markets, which have been particularly sensitive to developments in the Russia-Ukraine crisis, were mixed.

Loading

Retailers and other companies that rely on direct consumer spending fell broadly. Home Depot slumped 8.9 per cent as concerns over the home-improvement retailer’s profit margins outweighed an otherwise solid quarterly financial report.

Technology stocks, which have an outsized impact on market indexes because of their pricey valuations, also fell. Apple shed 1.6 per cent.