The escaleting crisis in the Crimea and the Russian demonstration of force has provoked negative responses from the U.S. and Europe, hitting stocks from Wall Street to Ukraine and causing a spike in oil and natural gas prices that could reach into consumers’ wallets.
UKRAINE vs RUSSIA: WHAT DOES IT MEANS FOR STOCKS AND BINARY OPTIONS?
Global indices were down sharply in early trading led by EU and other areas close to the situation. Currency and commodity markets were also impacted and could be offering up entry points as well.
The ruble fell to its lowest point ever against the U.S. dollar. The Russian currency fell below the level of 50 against the euro, which is also the lowest ever recorded.
Oil prices have soared globally to their highest levels this year today as the Russian oil crisis grows with Ukraine over concerns for energy supplies.
Russia is the worlds largest oil producer, so any sanctions placed on Russia could significantly affect prices of oil worldwide.
Europe's main stock market indices closed lower amid a standoff between Russia and Ukraine, with Frankfurt's DAX 30 tumbling 3.44% to 9,358.89 points.
London's FTSE 100 dropped 1.49% to 6,708.35 points, and Paris's CAC 40 shed 2.66% to 4,290.87 points.
German stock market closes down 3.44%.
The S&P 500 index opened in a downward gap because of this news that came in the weekend, whereas, Dow Jones index sank by 163 points in just one day.
General Electric company along with 3M dropped by nearly 1.5% on Monday where pressure was seen in the industrial sector stocks; whereas, on the other hand Gazprom of Russia sank badly by around 7.2% amidst the tensions growing between Russia and Ukraine.
Anyway, Russian assets rebounded on Tuesday as President Vladimir Putin said he would only use force in neighbouring Ukraine as a last resort.
The ruble also rebounded, after sliding 2 percent on Monday. At 0930 GMT it was up 1.2 percent to 36.10 against the dollar and was up 0.8 percent at 49.75 versus the euro.
Resolution of Ukraine crisis will be crucial. Until now these events didn’t worry the markets, but the prospects of a new war in Europe are creating jitters. Barack Obama and Angela Merkel called Putin to calm the situation even after Obama warned of potential consequences if Russia threatens Ukraine’s sovereignty