Trading in the Moscow Exchange has been suspended
Wall Street stocks fell on Wednesday, with concerns over the Ukraine crisis pushing the S&P 500 deeper into correction territory. Global risk aversion intensified after Ukraine declared a state of emergency and began to mobilize reservists, calling on its citizens to immediately leave Russia. As such, the Dow Jones Industrial Average fell 1.4%, the tech-heavy Nasdaq Composite retreated 2.6%, and the S&P 500 plunged 1.8%.
Asian stock markets plunged on Thursday after President Vladimir Putin announced Russian military action in Ukraine. Putin said the military operation was needed to protect civilians in eastern Ukraine. Ukrainian President Volodymyr Zelenskyy announced a country-wide martial law. Hong Kong’s Hang Seng Index declined nearly 3%. Korea’s Kospi dropped 2.6%. Japan’s Nikkei 225 lost 1.8% after coming back from a holiday. China’s Shanghai Composite moved 1.54% lower.
Following mixed dynamics in the first half of the week, the dollar resumed the ascent versus high-yielding counterparts due to its safe-haven status as risk aversion intensified. EURUSD failed to regain the 1.1400 figure and came under renewed pressure to get back below both the 20-DMA and the 1.1300 figure to notch late-January lows just above the 1.1200 figure.
Amid these developments, trading in the Moscow Exchange has been suspended and the Russian rouble on the interbank market fell to a new record low against the dollar. In the oil market, geopolitical news triggered a rally above the $100 figure on Thursday. Brent crude jumped to fresh multi-year highs around $100.30 and could extend the rally as the situation surrounding Ukraine keeps deteriorating, furling supply-related concerns in the market.