Dubai Telegraph - Stocks slide as traders track Ukraine crisis

Haven investment gold won support, rising very close to $1,900 an ounce over concerns of a potential invasion of Ukraine by neighbouring Russia.

The crisis in Ukraine is a serious threat to the global economy's post-pandemic recovery, Indonesia's leader warned at a meeting of finance chiefs from the G20 wealthy nations.

The Kremlin said the country's withdrawal of forces from around Ukraine's borders would take place over an extended period, while Kyiv's allies said Russia appeared to still be moving towards an invasion.

Meanwhile, there were reports of intensifying shell fire between Ukranian forces and Moscow-backed separatists, and Russia expelled a senior US diplomat.

"In recent weeks, there have been instances where the prospect of an outright invasion seemed more likely, but in the past 24 hours we seem to have been stuck in no man’s land, and seeing as traders despise uncertainty, equity benchmarks are under pressure," said Equiti Capital market analyst David Madden.

Global equities were sent plunging and crude surged at the start of the week after a top US official said Russia could invade Ukraine imminently, but Moscow appeared to soothe those fears Tuesday by saying it had started withdrawing some soldiers.

European stocks initially held up fairly well thanks to a slew of good earnings results.

European aircraft giant Airbus posted record profits in 2021 after two years of losses as it cruises past the pandemic-induced crisis in the travel industry, company results showed Thursday.

Air France-KLM cut losses in half compared to 2020 to 3.3 billion euros.

Elsewhere, Swiss food giant Nestle's net profit and sales rose in 2021 as it hiked prices amid soaring global inflation, and Commerzbank returned to profit despite spending one billion euros to downsize its branch network and staff.

Asian equity markets enjoyed broadly positive sessions on Thursday.

- Oil drops -

High oil prices, which have contributed heavily to the soaring inflation, fell sharply Thursday on growing hopes that talks on the Iran nuclear deal could soon bear fruit.

Tehran's top negotiator Ali Bagheri Kani said an agreement was "closer than ever" and while Washington and Paris were a little more circumspect, the comments raised the possibility that Iranian crude could return to the market soon.

"Positive developments in the US-Iran nuclear negotiations are helping to calm oil prices," noted Claudio Galimberti at Rystad Energy.

"Although not a done deal yet, prices are sliding on news of progress and broad consensus in the talks as it could ultimately see up to 900,000 barrels a day of crude added to the market by December this year."

The developments offset uncertainty over the Russia-Ukraine crisis, which had helped propel prices towards $100 per barrel for the first time in more than seven years, and come with demand continuing to improve as the world economy reopens.

- Key figures around 1630 GMT -

New York - Dow: DOWN 1.2 percent at 34,516.89 points

EURO STOXX 50: DOWN 0.7 percent at 4,109.23

London - FTSE 100: DOWN 0.9 percent at 7,537.37 (close)

Frankfurt - DAX: DOWN 0.7 percent at 15,267.63 (close)

Paris - CAC 40: DOWN 0.3 percent at 6,946.82 (close)

Tokyo - Nikkei 225: DOWN 0.8 percent at 27,232.87 (close)

Hong Kong - Hang Seng Index: UP 0.3 percent at 24,792.77 (close)

Shanghai - Composite: UP 0.1 percent at 3,468.04 (close)

West Texas Intermediate: DOWN 2.1 percent at $91.74 per barrel

Brent North Sea crude: DOWN 1.9 percent at $92.99 per barrel

Euro/dollar: DOWN at $1.1363 from $1.1381 late Wednesday

Pound/dollar: UP at $1.3623 from $1.3589

Euro/pound: DOWN at 83.43 pence from 83.75 pence

Dollar/yen: DOWN at 115.00 yen from 115.49 yen

burs-rl/bp

A.Ragab--DT