$4 gas, no problem, say Americans, if it stops Putin. Live updates on Ukraine crisis

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Russia’s invasion of Ukraine has sparked unprecedented economic and financial retaliation from western nations which are piling on sanctions in what France has called “all-out economic and financial war.”

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But the conflict will have consequences for the whole world as it cuts off crucial energy and crop supplies, disrupts businesses and upsets financial markets, already under stress as central banks tighten policy.

There is a lot going on out there so check here for the latest news on how the conflict is affecting markets, businesses and the economy.

9:43 a.m.

U.S. stocks just opened sharply higher after four straight sessions of losses.

The Dow Jones Industrial Average rose 227.78 points, or 0.70 per cent, at the open to 32,860.42.

The S&P 500 opened higher by 52.40 points, or 1.26 per cent, at 4,223.10, while the Nasdaq Composite gained 318.15 points, or 2.49 per cent, to 13,113.70 at the opening bell.

The TSX composite index was up 27.35 points, or 0.13 per cent, at 21,259.38.

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9:29 a.m.

CAE is O-U-T

Add Montreal-based CAE Inc. to the list of global companies that have quit Russia in protest of President Vladimir Putin’s invasion of Russia.

The maker of flight simulators and medical devices said on March 8 that it had suspended, “all services and training to Russian airlines, aircraft operators and healthcare distributors, in light of Russia’s invasion of Ukraine.”

The company won’t sell simulators to Russian airlines, nor will it service existing ones, the statement said. CAE doesn’t have any facilities in Russia, but it had been servicing simulators sold to Russian airlines in the past, and Russian airlines were clients in its global network of training centres.

CAE said it has donated $60,000 to the Red Cross to support Ukrainians fleeing the war.

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The Financial Post’s Gabriel Friedman spoke to CAE’s chief executive, Marc Parent, in an exclusive interview in January. Read the story here.

— Kevin Carmichael

8:40 a.m.

Oil is falling today and stocks are rising. What gives?

Analysts say markets are having a bit of a relief rally, but it probably won’t last.

MSCI world equity index was up 0.7 per cent this morning, Europe’s STOXX 600 gained 3.1 per cent and Wall Street futures were also up on news of talks between Russia and Ukraine.

Analysts consider the rebound to be a technical correction, rather than signalling a tangible change in sentiment about the conflict, which is Europe’s biggest war since World War Two, reports Reuters.

“For now, markets are relieved by the fact we haven’t had any fresh bearish news since yesterday’s announcement of a ban in oil imports from Russia,” Fawad Razaqzada, market analyst at Think Markets, told the news agency.

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“The markets were severely oversold… this is also typical of a bear market when you sometimes see multiple percentage point gains in a short period of time as the shorts are squeezed, before the rally runs out of steam and the downward trend resumes.”

Better known as a dead cat bounce.

Oil prices climbed higher yesterday after the U.S. banned Russian fossil fuels, but are falling today. Goldman Sachs said the ban had already been priced in and traders say there is a view today that the ban may not worsen shortages.

Brent crude futures were at US$124.78 a barrel, down 2.5 per cent on the day, having eased since Monday’s high of US$139.13. U.S. West Texas Intermediate (WTI) fell $3.19, or 2.6 per cent, to US$120.51.

7:24 a.m.

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Good Morning!

U.S. President Joe Biden’s announcement yesterday that America would ban all Russian fossil fuel imports, appears to have the support of the people.

A Ipsos poll, taken shortly before the announcement, found that 62 per cent of Americans say they are willing to pay more for fuel and gas because of sanctions against Russia to defend another democratic country. That’s up from 49 per cent two weeks ago.

Eighty per cent said they believe the United States should not buy oil or gas from Russia during this conflict.

Their resolve will be tested.

Gas prices have never been this high in the U.S. rising to US$4.196 this week, higher than the record of $4.165 in 2008, according to numbers from the U.S. Energy Information Administration.

With Biden’s ban and the conflict continuing they are likely to go higher.

“Americans have never seen gasoline prices this high, nor have we seen the pace of increases so fast and furious,” said Patrick De Haan, GasBuddy’s head of petroleum analysis in a statement this week.

“It’s a dire situation and won’t improve any time soon. The high prices are likely to stick around for not days or weeks, like they did in 2008, but months.”

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Additional reporting by Reuters and Bloomberg