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The withdrawal of Yevgeny Prigozhin’s troops from Russia ended the warlord’s armed uprising but raised doubts about the stability of Vladimir Putin’s regime Stocks were mixed on concerns that rose.
International benchmark Brent crude rose 1.3% to $74.80 a barrel in early Asian trade on Monday, while U.S. West Texas Intermediate rose 1.4% to $70.11 a barrel.
Prigozhin and his Wagnerian mercenaries struck a deal with Moscow over the weekend, sending crude benchmarks higher after comments from Putin comparing the crisis to the 1917 revolution.
Traders said the short-lived insurgency raised serious questions about the prospects of Putin’s regime, but the immediate impact on crude output at one of the world’s largest suppliers remained uncertain.
“Anytime there is a major geopolitical event with a major oil supplier, there is a potential for supply disruption,” said Stephen Innes, managing partner at SPI Asset Management. “It opens a can of worms and we have to look at How is the result.”
Gold and the yen also edged higher on Monday as risk-off sentiment gripped markets. Gold rose 0.4 percent to $1,928 a troy ounce, while the yen gained 0.1 percent to 143.5 yen per dollar.
The yen was also boosted after a Bank of Japan board member said the central bank should debate changes to its yield curve control policy.
The bond market benefited from investors flocking to safe-haven assets, with the yield on the 10-year U.S. Treasury note down 0.01 percentage point to 3.727%.
The yuan fell 0.5% to a seven-month low of 7.2153 against the dollar as markets in China recovered from the long holiday and concerns over China’s economic growth mounted.
Asian shares were mixed on Monday, with Japan’s benchmark Topix gaining 0.2% and Hong Kong’s Hang Seng falling 0.3%. China’s CSI 300 index fell 1.5%.
Australia’s S&P/ASX 200 fell 0.4% after analysts at Goldman Sachs downgraded the country’s stock market to underweight amid a gloomy outlook for China’s economic growth.
Futures markets expect Wall Street to open slightly higher, with the benchmark S&P 500 expected to rise 0.2 percent and the tech-heavy Nasdaq to rise 0.3 percent. London’s FTSE 100 is expected to rise 0.1%.