Wall Street stocks edge lower as traders assess economic risk

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Government bond prices rise sharply and Brent crude oil climbs back above $100 via IrishTimesBiz

US stocks edged lower, government bonds rallied and oil prices rose sharply on Tuesday as traders weighed the global economic implications of Russia’s invasion of Ukraine.

Meanwhile, government bond prices rose significantly, particularly in the eurozone, as traders sought shelter from economic risk and also bet on the European Central Bank maintaining supportive monetary policies. The ECB has not raised its main deposit rate since 2011. It has bought more than €1.6 trillion of euro zone government bonds under its pandemic emergency purchase scheme and had been expected to turn less accommodative to tackle record high levels of inflation.But the euro zone economy faces greater risks from the Ukraine crisis than the UK and the US, economists have said, because of deeper trade links with Russia and heavy reliance on Russian oil and gas.

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