Russia’s monetary markets collapsed on Monday to their lowest stage in additional than a yr as tensions ramped up in japanese Ukraine and the Kremlin rejected plans for a face-to-face assembly between Russian President Vladimir Putin and President Joe Biden.
What Occurred: The ruble and European shares tumbled, whereas oil costs rose, as traders are more and more involved about an escalation between Moscow and the West.
The pan-continental Stoxx Europe 600 fell 1.3%. The MOEX, Russia’s benchmark inventory index, dropped by 10.5%, marking its largest each day proportion loss since March 2014 throughout Russia’s invasion of Crimea. The ruble additionally misplaced floor all through the day, falling 3.4% towards the greenback.
In the meantime, U.S. inventory markets have been closed Monday for Presidents’ Day, after posting losses final week as traders braced for a doable invasion of Ukraine. Futures for the S&P 500 declined nearly 1.3% throughout Monday’s shortened buying and selling interval, which was halted at 12 p.m. ET, whereas contracts for the tech-focused Nasdaq 100 fell 1.9% and futures for the Dow Jones Industrial Common dropped 0.9%.
The futures have been sharply decrease when buying and selling resumed at 6 p.m. ET on Monday. Futures tied to the Dow Jones Industrial Common have been down by over 500 factors, or over 1.3%. S&P 500 futures dropped by 1.7%, and Nasdaq 100 futures fell by 2.4%.
Rigidity Rising: Putin stated Monday night he would acknowledge the independence of two Russian-led breakaway areas of Ukraine.
Additionally on Monday, Russia stated it had destroyed two Ukrainian armored autos inside its territory. Western leaders have warned that Putin could also be in search of a false excuse to proceed with an assault.
Russia has greater than 100,000 troops alongside its border with Ukraine, and Biden final week confirmed that U.S. Intelligence is warning of an imminent Russian invasion of Ukraine.
Photograph: Courtesy of Dmitriy Fomin on Flickr
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