Topline
Global stock markets slumped while oil prices surged on Tuesday amid rising tensions in eastern Europe after Russian President Vladimir Putin ordered Russian troops to march into two pro-Russian separatist enclaves in eastern Ukraine.
Global stock markets fell amid rising tensions between Russia and Ukraine.
Key Facts
Hong Kong’s Hang Seng Index ended the day’s trade down 2.69% while Tokyo’s Nikkei 225 shed 1.71%.
In Europe the pan-regional Euro Stoxx 50 index opened 1.02% lower while the London Stock Exchange’s FTSE 100 dropped 0.39%.
In Europe the pan-regional Euro Stoxx 50 index opened 1.02% lower while the London Stock Exchange’s FTSE 100 dropped 0.39%.
U.S. markets are also braced for steep losses following the opening bell as futures for the S&P 500, Dow and Nasdaq were down 1%, 1.94% and 3.17%, respectively, at 4.30 am E.T.
The MOEX Russia Index has been the worst hit so far, slumping more than 5% since markets opened on Tuesday.
In contrast, Brent crude futures rose 3.96%, driving oil prices up to $99.17 per barrel amid fears that Russia’s energy exports could be disrupted.
Earlier on Monday, the Russian ruble fell to two year low of 80.2 against the dollar and currently sits at 79.66, continuing a slide that began in 2014 when Russia annexed Ukraine’s Crimean Peninsula.
What To Watch For
The U.K. declared that it will hit Russia with a “first barrage” of economic sanctions, while the European Union will also decide on Russian sanctions Tuesday. British Prime Minister Boris Johnson stated that Russia and Putin have “plainly” violated Ukrainian sovereignty by moving troops into its territory in violation of international law. On Monday, Washington indicated that it would only impose economic sanctions on the two separatist regions—Donetsk and Luhansk. But later the U.S. Ambassador to the United Nations, Linda Thomas-Greenfield told reporters that the U.S. will coordinate with allies and announce new sanctions against Russia on Tuesday.
Crucial Quote
Johnson’s comments come after the U.K.’s Health Minister Sajid Javid told Sky News that the invasion of Ukraine “has begun” as tanks and armored vehicles were seen overnight near the rebel-held Donetsk region. “It’s clear from what we have already seen and found out today that the Russians and President Putin have decided to attack the sovereignty of Ukraine and its territorial integrity,” he said.
Further Reading
Ruble Plunges To 80 Against The Dollar As Putin Recognizes Breakaway Republics (Forbes)
Source: https://www.forbes.com/sites/siladityaray/2022/02/22/global-stocks-tumble-oil-surges-as-putin-orders-russian-troops-to-enter-eastern-ukraine/