The ASX opened 0.6% higher but is tipped to follow the European and US markets into the red as the war in Ukraine continues to rage, and floods ravage large swathes of NSW and Queensland.
Global oil continued its surge, reaching $120 a barrel before cooling down to around $111, and European gas remained at its highest level on record.
Meanwhile, some pumps around Australia have passed the $2-per-litre threshold.
ASX futures were down 77 points or 1.1 per cent to 7049 at 7.30 this morning. On Wall Street the Dow was down -0.02%, the Nasdaq had lost -1.3%, but the S&P 500 was up +0.1%.
In Europe it was bleaker, with the Stoxx 50 at -2.1%, the FTSE at -2.6%, the CAC at -1.8% and the DAX down -2.2%.
Sanction watch: Russia is ‘cancelled’
The rouble has tanked as the initial sanctions imposed in response to the now week-long war in Ukraine start to bite, including the suspension of the Nord Stream 2 gas pipeline to Germany, a freeze on Russian assets and banking activity and the country's ejection from the SWIFT global banking network.
The US is targeting Russian oil refining capabilities, with pressure continuing to build for the West to ban Russian oil and gas.
In the latest round of sanctions, the White House has vowed to go after ‘Putin’s cronies’, banning travel for oligarchs and their associates.
The UK this week announced that Russian vessels would be blocked from its ports, while the EU weighs up a ban on Russian ships.
Australia’s second-largest superannuation fund, Australian Retirement Trust – established Monday following the merger of Sunsuper and QSuper – is offloading its $133 million portfolio of Russian assets, as treasurer Josh Frydenberg leans on the $3.5 trillion sector to sever any financial links with Russia.
A bright spot for commodities
Australian oil, gas and coal shares rose on the ASX, perhaps driven by the threat of a cessation of supply from Russian sources. Whitehaven Coal added 10.6 per cent, Beach Petroleum (ASX:BPT) added 4.7 per cent and Woodside Petroleum gained 3 per cent.
Minerals continued to rally: Pilbara Minerals climbed 5.4 per cent, Nickel mines closed 5.2 per cent higher and Oz Minerals added 5 per cent. Rio Tinto climbed 3.7 per cent, BHP added 3.6 per cent and Fortescue Metals jumped 4.2 per cent. Australian Strategic Minerals Limited
The dollar is up 0.3% to 73.2 US cents, while iron ore is still going strong, gaining 5.5% to US$153 per tonne.