Wall Street and European stocks fall as pressure builds on Russian financial system

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Wall Street and European stocks fell, oil prices rose, the rouble plunged and US government bonds rallied after new sanctions imposed on Russia heightened tensions across financial markets.

The broad-based benchmark US S&P 500 index lost 0.7 per cent, while the technology-focused Nasdaq Composite edged down 0.1 per cent.

In Europe, the regional Stoxx 600 share gauge closed 0.1 per cent lower. The Stoxx banks sub-index fell 5.7 per cent as traders responded to uncertainty about western allies locking some Russian lenders out of the Swift payments system. Germany’s Xetra Dax lost 0.7 per cent.

The moves came after Russian president Vladimir Putin put his country’s nuclear forces on high alert and western powers imposed sanctions on Russia’s central bank in response to the invasion of Ukraine.

Global equities had rallied on Friday as traders reacted to punitive measures against Russia steering clear of the nation’s energy exports. But after…

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