Global stocks fall as Russia nearing Ukraine
Russia’s MOEX index dropped nearly 11per cent; Nikkei 225, Hang Seng, Kospi, Shanghai, S&P/ASX-200 in the red; S&P 500, Dow industrials, Nasdaq composite fell over 1per cent; US futures sharply lower; European indices fell upto 1%
image for illustrative purpose
Bangkok: Oil prices surged nearly five per cent and stock prices dropped after Russian President Vladimir Putin ordered forces into separatist regions of eastern Ukraine, bringing a long-feared invasion a step closer.
Germany's DAX slipped 0.9per cent to 14,604.98 and the CAC 40 in Paris lost 0.6 per cent to 6,747.97. Britain's FTSE 100 gave up 0.4per cent to 7,452.18. US futures were sharply lower, with the contract for the S&P 500 down 1per cent and the future for the Dow industrials 0.9per cent lower. So far, the biggest losses have been in Russia, where the MOEX index was down 5.4per cent early Tuesday after losing nearly 11per cent on Monday. The ruble was 2.5per cent lower.
"The current situation is tightening financial conditions for Russian companies, destabilising markets and reducing business predictability," Elena Nazarova of FxPro said in a commentary. In Asian trading, Tokyo's Nikkei 225 index dropped 1.7per cent to 26,449.61 while the Hang Seng in Hong Kong regained some lost ground to close 2.7per cent lower at 23,520.00. South Korea's Kospi lost 1.4per cent to 2,706.79 and the Shanghai Composite index fell 1per cent to 3,457.15. Australia's S&P/ASX 200 lost 1per cent to 7,161.30.
Russia is a major energy producer and the tensions over Ukraine have brought wide swings in volatile energy prices, on top of the inevitable risks of a broader conflict. Oil prices already had surged recently to their highest level since 2014.
By early Tuesday, US benchmark crude oil had advanced 4.9 per cent to $94.64 per barrel in electronic trading on the New York Mercantile Exchange. The price of Brent crude, the standard for international oils, jumped 3.9 per cent to $99.07 per barrel. US markets were closed Monday for Presidents Day, but markets in Europe and Asia shuddered as Putin moved to secure Russia's hold on Ukraine's rebel regions, adding to fears of a full-scale invasion.
