ASX slumps as investors sell energy and mining stocks; Fortescue signs Airbus deal

ASX slumps below 7000 as investors sell energy and mining stocks. St Barbara surges while Nickel Mines dives. Fortescue teams up with Airbus and Ampol quits Russian oil.

Commodity prices are helping to limit losses on the ASX, despite heavy declines in offshore markets. Picture: Nikki Short / NCA NewsWire

Welcome to the Trading Day blog for Tuesday, March 8. ASX falls for a third day straight as the ongoing crisis in Ukraine and growing sanctions on Russia cause stagflation fears in global markets.

The benchmark S&P/ASX 200 index fell by 0.8 per cent to 6980.3.

US stocks fell as the Ukraine war entered its 12th day and energy prices soared, stoking fears about inflation. The Dow Jones Industrial Average closed down 797 points, or 2.4 per cent, the S&P 500 3 per cent and and the tech-heavy Nasdaq  dropped 3.6 per cent.

Brent crude topped $US130 a barrel, the highest level since July 2008 before paring gains. It recently traded up 5.1 per cent to $124.12 a barrel while the US Nymex crude price was up 3.2 per cent to $US119.42 a barrel. Europe gas prices also surged to a record.

Iron ore, meanwhile, climbed 6.8 per cent to $US162.75 a tonne, while among soft commodities, wheat prices are too nearing a record.

The Aussie dollar fell from highs near US74.40 cents to lows near US73.10 cents and was trading at US73.15 cents in US trade.