Markets rocked by Russian invasion
It has been a brutal day in the markets following on from Russia’s early morning invasion of Ukraine. This time yesterday, global equity markets were rallying as the limited sanctions against Moscow promoted traders to snap up relatively cheap stocks. Today is a very different story, as early reports of explosions in several areas in Ukraine sent shockwaves through the markets. The mood in the markets has gone from bad to worse as headlines about attacks from the Russian side keep rolling in.
European equity markets are nursing heavy losses as the major indices are all down at least 3%. The FTSE 100 has lost 3.5%, and it it’s the top performer of the European bunch. The DAX has dropped nearly 4%, and it is off the lows of the session. Earlier today, it slumped to its lowest mark in one year. Germany is heavily dependent on Russian natural gas, and that make’s the economy very exposed to the conflict in Eastern Europe. Western governments are in the process of slapping more sanctions on Russia, and when you consider the level of violence seen today, the saga is likely to last some time. Brent crude oil is up over 7%, and it comfortably cleared the $100 mark. The events of today have ramped up fears about an energy crisis as Russia is a major exporter of oil and gas. Gold hit its highest mark in over one year a few hours ago, but the metal has cooled a little since. Due to the powerful safe haven play, the yellow is in high demand.
