Ruble crashes to record low as Russia doubles interest rates to 20%
Traders are holding their breath this morning ahead of what is expected to be a hot day in the markets.
An escalation in sanctions over the weekend – coupled with the frightening nuclear threat from Vladimir Putin – has fueled uncertainty over the progress of the invasion of Ukraine.
The ruble plunged to a new historic low against the dollar, while the opening of the Moscow Stock Exchange was delayed.
Although there was a mixed performance for Asian stocks overnight, the FTSE 100 and European stocks are expected to dip on the open.
Wai Ho Leong, an analyst at Modular Asset Management, said: “A terrible weekend…difficult to make decisions as the conflict in Ukraine escalates.”
5 things to start your day
1) BP abandons its stake in the Russian oil giant Rosneft FTSE 100 company says war in Ukraine has caused it to ‘fundamentally rethink’ its 19.75% shareholding
2) Sanctions spark fears for Russian banks as country braces for ruble ‘freefall’ Swift payment network ban expected to send currency plummeting
3) The West has finally taken off the gloves against Putin and redeemed our honor Ukraine’s valiant resistance caused a moral scramble to be seen and counted in the fray
4) Delays at UK ports double as Brexit bureaucracy slows customs Economists have warned that Russia’s invasion of Ukraine threatens to prolong disruption
5) Aeroflot cancels all flights to European destinations after EU bans Russian jets The European Commission announced on Sunday that the entire bloc of 27 countries would block Russian planes from entering the bloc’s airspace or landing at their airports.
What happened overnight
Stocks were mixed in Asia, but US and European futures were significantly lower as President Vladimir Putin escalated tensions by ordering Russia’s nuclear forces to be placed on high alert.
US futures fell, with the contract for the S&P 500 down 2.5% and that for the Dow industrials 1.6% lower. The German DAX future fell 3.2% and the FTSE 100 future lost 1.3%.
Japan’s Nikkei 225 index rebounded from earlier losses to gain 0.1pc. The Hang Seng in Hong Kong lost 0.8pc, the Shanghai Composite fell 0.1pc, while in Sydney the S&P/ASX 200 gained 0.7pc.
Business : BB Healthcare Trust, Bunzl, RHI Magnesita (annual results); Hay (intermediate results); Related British Foods (commercial update)
Economy: Chicago Purchasing Managers Index (WE)