ASX 200 closes up 0.7pc as commodities surge, US, EU equity futures dive

ASX finishes up 0.7 per cent as resource stocks rally, amid harsher sanctions on Russia. Zip and Sezzle to merge, Suncorp hit with $75m flood cost and BGH ups its Virtus bid.

ASX futures pointed to a strong open in local trading but volatility is expected to remain as the markets await the latest developments on the Ukraine war. Picture: Paul Miller / AAP Image

Welcome to the Trading Day blog for Monday, February 28. ASX 200 closes 0.7 per cent higher as commodities surge, US, EU equity futures dive, as the West imposed harsher sanctions on Russia.

As Russian President Vladimir Putin ordered his country's military to advance in Ukraine, the US and Europe said they would sanction the central bank in Moscow and cut off Russian lenders from SWIFT, the international payments network. Ukraine has also agreed to talks with Russia, providing hopes of a diplomatic solution to the crisis.

The S&P/ASX 200 share index closes up 0.7 per at 7049.1 cent as commodities surge after falling in morning trade.

A plunge in US equity index futures have tempered the rally for the local market. That follows a strong rebound on Wall Street last week that saw the  Dow Jones Industrial Average close up 2.5 per cent on Friday, while the broader S&P 500 gained 2.2 per cent and tech-heavy Nasdaq added 1.6 per cent. In Europe, major benchmark indices were up more than 3 per cent while Asian markets were also broadly higher.

WTI crude oil futures soared 7.4 per cent to US$98.70 a barrel on renewed fears that the isolation of Russia will result in a shortage of crude oil. Last week, the global oil price fell, falling around 1.3 per cent as OPEC+ producers weighed output targets.

Elsewhere, Iron ore dropped 2.6 per cent to $US133.45 a tonne but finished flat on the week.

Originally published as ASX 200 closes up 0.7pc as commodities surge, US, EU equity futures dive

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