Cascading Russia Risks Stir Market Correlations That Can’t Last
- Oil surging with Treasuries is among unusual cross-asset moves
- Markets flummoxed as Russia-Ukraine war roils global recovery
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Global markets are throwing up a jumble of unusual correlations as commodity flows and the world economic outlook are upended by the war in Ukraine and the ostracism of Russia.
Examples include oil soaring alongside Treasuries and gold bursting higher with the dollar. The former was evident in the past 24 hours amid a jump in Brent crude to as high as $113 a barrel and a plunge in the U.S. 10-year yield to below 1.70%, compared with a level of 2% before Russia invaded its neighbor.