After Russian President Vladimir Putin’s invasion of Ukraine, oil prices soared above $100 per barrel for the first time since 2014. Stock markets plummeted and the rouble fell to a record low.
- Russia invades Ukraine, oil prices surpass $100
- European stocks drop 2.75%, Rouble hits record low
- MSCI Asia ex-Japan down more than 3 %, lowest since Nov. 2020
- Treasuries, Bunds and the dollar rally
- Highest gold since Jan. 2021
All the expected reactions were displayed by markets. Europe’s main stock markets opened 2.5% to 4% lower than usual, and benchmark government bonds, dollar, Swiss Franc, Japanese Yen, and gold rallied in a safety-oriented move.
Putin claimed he authorized what he called a “special military operation” and the Ukraine government accused Moscow of launching an invasion of its territory.
After the terrorist attacks, Joe Biden, U.S. President, stated that the United States and its allies would impose “severe sanctions” on Russia. Europe’s leaders stated that they would block access to Russian financial markets and freeze assets.
The Russian and Ukrainian markets fell in freefall.
The Russian rouble fell nearly 7% to an unheard of 86.98 per $1 and there were more than 10% falls on the Moscow stock market when it opened following an initial suspension. The Russian central bank ordered that short selling and over-the-counter markets be banned until further notice.
Brent crude futures rose more than 3.5% and surpassed $100 per barrel for the first time since September 2014.
West Texas Intermediate rose 4.6% to $96.22 a barrel, its highest price since August 2014. Gold jumped more than 1.7% to reach its highest point since January 2021.
