Aluminum prices also extended gains after Rusal's decision to temporarily halt production at one of its refineries in Ukraine, said ANZ.
Rusal said production at the refinery has been halted due to unavoidable logistical and transport challenges in the Black Sea and surrounding area. ANZ said the halt will weigh on supply of the metal, as Rusal's Ukraine-based refinery is a key source of raw material for Russian smelters.
Other News:
Commonwealth Bank of Australia said nickel markets were in a better position than aluminum markets before the Ukraine-Russia conflict, given rising Indonesian supply was expected to result in a surplus. Aluminum markets, however, were already tight due to supply cuts especially in China.
The metals are among some commodities most likely to be impacted by the war and its ramifications. For nickel, "where deficit conditions are a concern are Class 1 nickel markets [i.e. high purity nickel that is suitable for the battery market], especially with LME nickel stockpiles falling since last April," CBA said.
Russia has an outsized impact on those markets, accounting for roughly 17% of global output, CBA noted.
TODAY'S TOP HEADLINES
Ukraine, Russia Fail to Agree on Cease-Fire, as Moscow Shelling Kills Civilians
KYIV, Ukraine-Talks between Russia and Ukraine on a potential cease-fire ended with no deal on Monday as Moscow intensified its assault, killing at least 10 civilians in a shelling attack on residential neighborhoods in the eastern city of Kharkiv and pursuing efforts to seize the capital, Kyiv.
Ukrainian and Russian negotiators, who met in Belarus just inside its border with Ukraine, returned to their capitals for consultations and agreed to meet again in the coming days on the Polish-Belarusian border. Both delegations said the five-hour meeting led to some progress.
China's Official Manufacturing PMI Expands for Fourth Month
BEIJING-An official gauge of China's factory activity registered its fourth straight month of expansion in February, defying expectations of economic slowdown.
The official manufacturing purchasing managers index rose to 50.2 in February from 50.1 in January, the National Bureau of Statistics said Tuesday.
RBA Leaves Interest Rates Unchanged; War in Ukraine a New Source of Uncertainty
SYDNEY--Official interest rates in Australia were held steady at record lows on Tuesday after the country's central bank reiterated that it will be patient, awaiting confirmation that inflation has returned sustainably to its desired 2%-3% target band before tightening policy settings.
The Reserve Bank of Australia held its cash rate at a record low of 0.10% at its policy meeting, adding that the war in Ukraine has further clouded the global economic outlook.
U.S. Positioned to Withstand Economic Shock From Ukraine Crisis
As Russian President Vladimir Putin launched a war against Ukraine, half a world away the U.S. economy appeared to be rebounding from a winter surge of Covid-19 infections.
A range of U.S. data suggests U.S. economic activity picked up in recent weeks. Many Wall Street analysts expect the Labor Department on Friday to report large job gains in February and a further decline in unemployment.
Western Companies Pull Back From Russia in Response to Ukraine Invasion, Sanctions
British energy giant Shell PLC became the latest big Western company to sever ties with Russia over its invasion of Ukraine, saying it would pull back from joint projects in the country and quit its role financing the now-halted Nord Stream 2 gas pipeline.
Shell's decision Monday came a day after BP PLC said it would exit its nearly 20% stake in Russian oil producer Rosneft, under pressure from the U.K. government, and as international condemnation of Russia increasingly strained its economy.
U.S., Iran Split Over Key Nuclear Issues as Deal Deadline Nears
VIENNA-Iranian and U.S. officials are entering a crucial week of negotiations to restore the 2015 nuclear deal, with significant differences remaining on several key issues and new concerns that Russia's invasion of Ukraine could complicate the talks.
Iran's chief negotiator, Ali Bagheri-Kani, arrived in Vienna Monday morning with positions that could prove difficult to bridge with his Western counterparts, diplomats said. With Iran continuing to expand its nuclear work, Western diplomats have warned that the negotiations could collapse if a deal isn't reached this week.
Oil Producers Including U.S. Weigh Reserve Releases as War Prompts Rise in Prices
The U.S. and other major oil-consuming nations are considering releasing 70 million barrels of oil from their emergency stockpiles as crude prices surge, European and Persian Gulf officials briefed on the plan say, amid growing concerns over supply after Russia invaded Ukraine.
Oil, natural-gas and grain prices jumped Monday as a broadside of sanctions on Russia over the weekend threatened to ensnare commodities exports from the resource-rich nation. Futures for Brent crude, the benchmark in international oil markets, rose 3.1% to $100.99 a barrel.
Blockade on Russia Central Bank Neutralizes Defense Against Sanctions, U.S. Says
WASHINGTON-The U.S. and European Union blocked Russia's central bank from using its emergency reserves to protect the economy from the Western pressure campaign, a salvo the bank's governor said risked triggering a financial crisis.
The coordinated action blocks the central bank from selling dollars, euros and other foreign currencies in its reserves stockpile to stabilize the ruble. Announcing the move Monday in Washington before U.S. markets opened, U.S. officials said they intended the sanctions to stoke already surging inflation, and the actions against the Bank of Russia are intended in effect to neutralize the country's monetary defenses.
Bond Market Shakes Off Hefty Swings in Sentiment
A volatile market week spurred in part by the Russian attack on Ukraine has done little to change investor expectations that U.S. interest rates will rise steadily throughout 2022.
Yields on U.S. government bonds tumbled on Feb. 24 after Russia attacked Ukraine, reflecting investor concerns that the clash could hit economic growth, particularly in Europe. Yields then pared the decline during the U.S. session, a sign that investors are continuing to bet that the economic impact of the war will likely be contained.
The West's Sanctions Barrage Severs Russia's Economy from Much of the World
Western nations dropped economic sanctions of historic scale on Russia that are hobbling its financial system and effectively reversing 30 years of post-Cold War engagement.
The economic moves by the U.S. and Europe, in response to the invasion of Ukraine, reverberated Monday through Russia's economy, which was largely cut off from much of the West, and hindered the ability of Russia's central bank to manage the country's financial system and mitigate the damage.
Ukraine, Russia Fail to Agree on Cease-Fire, as Moscow Shelling Kills Civilians
KYIV, Ukraine-Talks between Russia and Ukraine on a potential cease-fire ended with no deal on Monday as Moscow intensified its assault, killing at least 10 civilians in a shelling attack on residential neighborhoods in the eastern city of Kharkiv and pursuing efforts to seize the capital, Kyiv.
Ukrainian and Russian negotiators, who met in Belarus just inside its border with Ukraine, returned to their capitals for consultations and agreed to meet again in the coming days on the Polish-Belarusian border. Both delegations said the five-hour meeting led to some progress.
U.S., Iran Split Over Key Nuclear Issues as Deal Deadline Nears
VIENNA-Iranian and U.S. officials are entering a crucial week of negotiations to restore the 2015 nuclear deal, with significant differences remaining on several key issues and new concerns that Russia's invasion of Ukraine could complicate the talks.
Iran's chief negotiator, Ali Bagheri-Kani, arrived in Vienna Monday morning with positions that could prove difficult to bridge with his Western counterparts, diplomats said. With Iran continuing to expand its nuclear work, Western diplomats have warned that the negotiations could collapse if a deal isn't reached this week.
Shell to Exit Joint Ventures With Gazprom, Citing Russia Invasion of Ukraine
LONDON-Shell PLC said it would exit its joint ventures with Russian energy giant Gazprom PJSC, a day after BP PLC said it would divest its nearly 20% stake in Russia's state-controlled oil producer Rosneft.
Shell cited Russia's invasion of Ukraine and said it would also end its involvement in financing the Nord Stream 2 pipeline project, a natural gas pipeline project recently sanctioned by the U.S.
BP's Sudden Russia Exit Exposes Risks for Western Companies in Ukraine Crisis
BP PLC's abrupt unwinding of Russia ties that were 30 years in the making shows the mounting risks Western companies face doing business there-and the mess they can face getting out.
The British oil company said Sunday that it would divest its nearly 20% stake in Russian state oil company Rosneft, valued around $14 billion at year-end, days after Russia's invasion of Ukraine drew an international outcry. BP earlier in the month had defended its longstanding partnership with Rosneft even as Russian President Vladimir Putin's threats against his neighbor intensified.
U.S. Says Russian U.N. Diplomats Are Spies and Orders Them Out
WASHINGTON-The U.S. is expelling a dozen Russian diplomats assigned to the United Nations in New York on allegations that they are intelligence agents, after what people familiar with the matter say was a yearslong debate within the U.S. government about the value of providing them with visas.
(MORE TO FOLLOW) Dow Jones Newswires
03-01-22 0046ET
