WS #14782
Ukrainian drone strikes on the Perm refinery and a Kyiv office building have escalated the conflict, pushing WTI crude to $106.60 and 10-year yields to 5.20%. This inflationary shock is pressuring the S&P 500 and driving desk rotations into defensive sectors and China H-shares. The market is pricing in prolonged geopolitical risk and higher energy costs, dampening growth outlooks.
Ukraine Escalation and Energy Shock
Ukrainian drone strikes on the Perm refinery and a Kyiv office building have escalated the conflict, pushing WTI crude to $106.60 and 10-year yields to 5.20%. This inflationary shock is pressuring the S&P 500 and driving desk rotations into defensive sectors and China H-shares. The market is pricing in prolonged geopolitical risk and higher energy costs, dampening growth outlooks.