The move by Russian President Vladimir Putin to recognize two breakaway regions of Ukraine and subsequent movement of armed personnel and weapons in those areas threw the world’s markets into a state of a tizzy.
Putin’s Announcement, West’s Sanctions: Witnesses reported seeing columns of military vehicles, including tanks, around Donetsk, the capital of one of the two regions recognized by Putin, according to Reuters.
The Russian president has ordered “peacekeepers” to the areas, while his announcements have earned international condemnation and immediate sanctions from the United States that halt U.S. business activity in the breakaway regions coupled with the import of goods, according to a separate Reuters report.
The U.S. ambassador to the United Nations, Linda Thomas-Greenfield, said after a Security Council meeting that the country will impose sanctions on Russia on Tuesday for “this clear violation of international law and Ukraine sovereignty and territorial integrity,” reported Reuters.
Asia Heads Lower: Japan’s Nikkei index traded 1.7% lower at 26,449.61 at press time, while the Hang Seng dropped 2.9% to 23,471.43.
Among emerging markets, India’s Sensex was down 1.4% to 56,883.00, while Thailand’s SET Index was down 0.6% at 1,684.15.
US Futures Slump Too: The Dow Jones Industrial Average Futures were down 0.7% at 34,079.18. S&P 500 and Nasdaq futures traded 0.7% and 1.2% lower at 4,348.87 and 13,548.07, respectively.
Oil and Gold Up: The March 22 contract for WTI Crude on the New York Mercantile Exchange edged up 3.7% to $94.60. ICE Brend Crude April 22 futures traded 2.25% higher at $97.54.
Oil jumped to a near seven-year high, according to a report from CNBC.
Gold hit its highest point in nine months thanks to the Ukraine crisis earlier on Monday night. Spot gold was seen trading 0.11% higher at $1,909.43 at press time.
“Rising stagflationary pressures around the world are also underpinning the precious metal, a situation that will be exacerbated by massive Western sanctions on Russia if they come to play,” said Jeffrey Halley, a senior market analyst at OANDA, according to CNBC.
Cryptos Plunge Sharply: Bitcoin (CRYPTO: BTC), Ethereum (CRYPTO: ETH), and Dogecoin (CRYPTO: DOGE) along with other major cryptocurrencies plunged in the early hours of Tuesday. At press time, the global cryptocurrency market cap decreased 7% to $1.65 trillion.
