Stocks, oil, bond yields edge up ahead of expected new Russia sanctions

Traders were back on Russia sanctions watch on Tuesday with oil, inflation-sensitive bond yields and stocks all edging higher ahead of expected new measures from the West in the coming days.

Europe saw the STOXX 600 index nudge 0.3 per cent higher as oil, industrial, tech and insurance stocks all made ground, while the euro clawed back a sliver of the 1.8 per cent it had lost against the dollar in recent days.

With investors waiting on the new batch of sanctions – most likely on Wednesday according to France’s European Affairs Minister – oil was up 1 per cent, lifting benchmark German Bund and US Treasury bond yields due to the prospect of higher global inflation.