(The opinions expressed here are those of the author, a

columnist for Reuters.)

By Mike Dolan

Oct 23 (Reuters) - What matters in U.S. and global

markets today

By Mike Dolan, Editor-At-Large, Finance and Markets

Oil prices jumped 4% on a wave of new retaliatory sanctions

on Russian crude over Moscow's repeated bombardment of Ukraine,

adding to fresh trade and inflation anxiety on Wall Street just

as megacap Tesla tumbled overnight on a big profits miss.

U.S. President Donald Trump hit Russia's two biggest oil

companies, Rosneft and Lukoil, with the sanctions in a

turnaround that also saw him cancel a meeting with Russian

counterpart Vladimir Putin. Although still down 15%

year-on-year, U.S. crude jumped above $60 per barrel to two week

highs.

Former Russian President Dmitry Medvedev said the latest Trump

moves over Ukraine were "an act of war against Russia."

Britain sanctioned Rosneft and Lukoil last week. Separately, EU

countries approved a 19th package of sanctions against Russia

for the war that includes a ban on imports of Russian LNG.

And the move came as industry sources told Reuters Indian

refiners were poised to sharply curtail imports of Russian oil

to ensure they were in compliance with U.S. sanctions. New Delhi

is under pressure from stiff U.S. trade tariffs over the issue.

The energy jolt comes as Wall Street awaits the September

U.S. inflation report tomorrow and pushed up Treasury yields

despite a decent 20-year bond auction on Wednesday. The dollar

firmed too, with the yen hitting its weakest since October 10.

Gold regained some of its poise after steep losses earlier

in the week.

Hit by a 10% earnings-day drop in Netflix and a 6% drop in

chipmaker Texas Instruments, the S&P500 lost 0.5% on Wednesday

as U.S.-China trade tensions heated up once again. Tesla's 4%

stock drop overnight adds to the jitters after the electric car

giant's fourth consecutive profit miss and Wall Street index

futures failed to rebound ahead of Thursday's bell.

Intel tops Thursday's heavy earnings diary.

The China trade worries jangled more broadly.

According to a Reuters report, the Trump administration is

considering a plan to curb an array of software-powered exports

to China to retaliate against Beijing's latest round of rare

earth export restrictions. Trump said the long-awaited meeting

with Chinese leader Xi Jinping may now not happen as the

November 1 deadline for more severe U.S. tariffs looms.

The Philadelphia Semiconductor index tumbled 2.4%.

Trump's cabinet secretaries view China's move on rare earths

as "full-blown economic war", a person familiar with

administration thinking told Reuters. "The prospect for

escalation is severe."

China's ruling Communist Party Central Committee, meanwhile,

released a communique on its latest five-year plan, emphasizing

a strong domestic market and an expansion of domestic demand.

Elsewhere, markets were more mixed as global political and

trade issues jostled with waves of corporate earnings. China's

stocks advanced, but Japan's Nikkei fell back more than 1%.

In today's column, I take a look at how Europe navigates the

trade crosswinds from both Washington and Beijing.

Today's Market Minute

* The United States hit Russia's major oil companies with

sanctions on Wednesday and accused the Russians of a lack of

commitment toward ending the war in Ukraine, as Moscow conducted

a major training exercise involving nuclear arms.

* Just a month after U.S. President Donald Trump hailed

"progress" in talks with China, the world's two most powerful

nations are scrambling to salvage a planned summit of their

leaders, now just a week away, while trading blame for a spike

in tension.

* The Trump administration is considering a plan to curb a

dizzying array of software-powered exports to China, from

laptops to jet engines, to retaliate against Beijing's latest

round of rare earth export restrictions, according to a U.S.

official and three people briefed by U.S. authorities.

* Critical minerals, and especially rare earths, as well as

the ongoing need to decarbonise and a bigger role for

governments are the three top areas of concern for the global

mining industry. Read the latest from ROI Asia Commodities

Columnist Clyde Russell.

Chart of the day

Trump hit Russia's two biggest oil companies with sanctions

in his latest sharp policy shift on Moscow's war in Ukraine,

prompting global oil prices to rise by 3% on Thursday and India

to consider cutting Russian imports. Oil and gas revenue, which

is currently down by 21% year-on-year, accounts for around a

quarter of Russia's budget and is the most important source of

cash for Moscow's war in Ukraine, now in its fourth year.

Today's events to watch (All times EDT)

* U.S. September existing home sales (1000), Kansas City

Federal Reserve October business survey (1100); euro zone

October consumer confidence (1000); Canada August retail sales

(0830)

* Federal Reserve Vice Chair for Supervision Michelle

Bowman and Board Governor Michael Barr speak; European Central

Bank chief economist Philip Lane speaks; Bank of England

policymaker Swati Dhingra speaks

* European Union summit in Brussels, with ECB President

Christine Lagarde attending

* U.S. corporate earnings: Intel, Blackstone, Ford, Dow,

PG&E, Honeywell, Newmont, Norfolk Southern, Union Pacific,

VeriSign, Mohawk, Valero, Dover, Allegion, Hasbro, Southwest

Airlines, Textron, Pool, CBRE, Roper etc

* U.S. Treasury sells 5-year inflation-protected notes

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Opinions expressed are those of the author. They do not reflect

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