By Dhirendra Tripathi
Investing.com – Stocks came under pressure on Monday after a weekend of rising tensions and increasing sanctions on Russia over its invasion of Ukraine.
Banks were hit especially hard. European countries and American officials moved to block Russian banks from the international bank messaging system SWIFT, making it harder for them to move money around for payments, and officials also moved to freeze Russian central bank assets held abroad. Both moves choked off Russia’s financial system, forcing it to close local stock markets.
The Russian currency also sank to record lows, and television news in the U.S. showed images of Russians standing in long lines to try to withdraw cash from bank machines.
The Nasdaq was on track for its sharpest two month drop since the beginning of the pandemic, Reuters reported.
The Ukraine news is also putting pressure on companies to withdraw their investments in various Russian projects. Oil major BP (NYSE:BP) said over the weekend it would exit its nearly 20% stake in Rosneft, and Shell (LON:RDSa) said Monday it was exiting its stake in Gazprom (MCX:GAZP).
There could be more such divestitures announced in the coming days as the world continues to put pressure on Russia.
Here are three things that could affect markets tomorrow:
1. Shell Divests
Shell PLC (BS:SHELl) said Monday it intends to exit its joint ventures with Russian state-owned energy company Gazprom and related entities after Russia invaded Ukraine. Shares of the oil major fell nearly 5%.
Shell will sell its 27.5% stake in the Sakhalin-II liquefied natural gas facility in Russia and its 50% stake in the Salym Petroleum Development and the Gydan energy ventures also in Russia.
2. Salesforce earnings
Salesforce.com Inc (NYSE:CRM)’s fourth-quarter earnings per share is seen at 75 cents on likely revenue of $7.25 billion, according to analysts tracked by Investing.com.
3. Retail earnings
Target Corporation (NYSE:TGT) is expected to report fourth-quarter revenue of $31.36 billion and profit per share of $2.85. It helps kick off a big week for retail earnings from department stores and discount stores.
–Reuters and Investing.com staff contributed to this report.