TOPLINE
Global stock indexes and major cryptocurrencies dived on Thursday while commodities like oil and precious metals rallied as Russia’s invasion of Ukraine sent shockwaves through international markets.
KEY FACTS
European stocks tumbled as markets opened on Thursday morning, with key indexes including London’s FTSE 100 down 2.46%, Germany’s Dax 3.48%, France’s CAC40 3.01%, Spain’s Ibex 2.58%, Euronext 100 2.62% and Euro Stoxx 50 3.37%.
The slump mirrors falling stocks in the Asia Pacific region Thursday, with Japan’s Nikkei down 1.81%, Hong Kong’s Hang Seng 3.21%, Australia’s All Ordinaries 2.95% and Shanghai’s Composite 1.70%.
U.S. markets are on a similar path for when markets open, with the Dow down 1.38% in pre-market trading, Nasdaq 2.57% and S&P 500 1.84%, with the latter continuing a days-long downwards trend.
The Moscow stock exchange, which uses the Russian ruble, suspended all trading Thursday amid enormous volatility in the currency and benchmark index MOEX was down nearly 40%.
Oil prices, meanwhile, jumped past $100 a barrel with the highest prices since 2014—Brent crude rose nearly 7% to $103 a barrel—and safe haven assets like gold, silver platinum and palladium grew between 1.5% and 3%.
Major cryptocurrencies also crashed in the wake of the invasion, with bitcoin down 8% in the last 24 hours, ether 12%, Binance’s BNB 11% and Ripple’s XRP 13%.
WHAT TO WATCH FOR
More sanctions. World leaders have already imposed fresh sanctions on Russian banks, lawmakers and oligarchs and President Joe Biden warned Thursdays’ G7 meeting would yield more “severe sanctions’ on Russia. The sanctions—which could be severe given the scale of Russia’s incursion—could cripple Russia’s economy and bar it from key markets. European leaders have already scheduled an emergency meeting to discuss the measures on Thursday evening.
FURTHER READING
Russia’s Invasion Of Ukraine Draws International Condemnation And Threats Of More Sanctions (Forbes)