Putin orders military intervention in Ukraine and markets falter. The price of Brent crude rose above $100 a barrel for the first time in more than seven years and in Asia, where yesterday’s Chinese listings closed higher. The Moscow Stock Exchange collapsed almost 30% after Russia’s attack on Ukraine. The Moscow List, which was put on hold as the announcement approached, extended the initially recorded losses and sees the Moex index post a record low of 28.8%. The Russian dollar-denominated RTS index collapsed to -38%, to an intraday low of 960.24 points. The Russian attack on Ukraine shattered about $180 billion of capital on the Moscow Stock Exchange, according to Bloomberg calculations. The Russian authorities were forced to suspend trading for the second time after the Moex index fell by 28.8%, in what is the largest drop in its history.
The Milan Stock Exchange, already heavy at first due to the effects of the Russian attack on Ukraine, is getting worse under a barrage of sales. The Ftse Mib leaves 3.5% on the ground at 25,106 points. The declines swing between Buzzi’s -5.8% and Tim’s 4%. Saipem loses 5.2% after the calculations. Bankers are bad with Unicredit losing 5.4% and Bpm Bank losing 5.23%. The spread between BTP and the Bund opens up to 175 basis points with a ten-year Italian yield of 1.91%.
All European indices are trading sharply soon after the start of trading. The CAC 40 in Paris lost 4.35 percent to 6,492 points, and the DAX 30 in Frankfurt lost 4.29 percent to 14,003 points. Madrid’s Ibex 35 index loses 4.99% to 8,069 points.
Tokyo is down 1.81% and Hong Kong is down 3.2% (tech is losing more than 5%). Wall Street futures also fell about 2%, after the S&P lost its initial gains on the way yesterday, closed down about 2%, and entered further into the correction phase, leaving the market at .18% since the last peak in November. The Dow Jones and Nasdaq in turn ended the decline at their lowest levels for the year. Markets are telling us Russia will now do what it wants given the weakening of sanctions, said Ray Atrell, chief strategist at National Australia Bank, judging by the real concern that Europe is now cut off from Russian gas.
Gas, oil and aluminum prices skyrocketed
The price of gas has risen on the Amsterdam market, which is the methane standard for continental Europe. After the Russian attack on Ukraine, futures contracts rose to the maximum By 30% to 114 euros per megawatt-hour, it is the fourth consecutive day of increases. The price of aluminum reached an all-time high: the price of the metal reached $3,382.50 per ton, surpassing the previous peak of $3,380.15 recorded during the global financial crisis in July 2008. With Brent hacking $100 in the hours of Russia’s attack on Ukraine.
Ruble at historic lows, Bitcoin below $35,000 (-9%)
As investors abandon riskier assets and turn to safer ones: the euro fell to a three-week low against the dollar, which is considered a safe-haven asset, The ruble, at an all-time low, is losing more than 9%. The Central Bank of Russia is carrying out interventions in the foreign exchange market to stabilize the situation after the fall of the ruble. Gold rose to its highest in June at $1.914 an ounce. Cryptocurrencies also fell after Russia’s attack on Ukraine. Bitcoin drops -8% below $35,000 and there is a 12% drop in Ethereum.
Food prices continue
The euro falls against the dollar after the Moscow attack on Ukraine. The single currency lost 0.54% to 1.1246 against the US currency. The exchange rate with the yen also fell sharply to 128.79 (-1%). Grain prices rose after the Russian attack on Ukraine. The cost of wheat, of which Kiev is a major producer and exporter, increased by 5.90%. But the prices of soybeans (+2.87%), corn (+5.47%) and oats (+4.81%) rose.
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