Markets witnessed a sharp sell-off and lost nearly 5% as escalating tensions between Russia and Ukraine spooked sentiments. Investors chose to move out of risky assets and preferred haven like gold in the Russian Stock Market. The Nifty index declined steadily to close at 16,247, near its low for the day. All sectoral and broader indices ended with deep cuts in line with the benchmark.
Russian Stock Market.
It was the financial sector that suffered the most losses. JPMorgan Chase (JPM) and Bank of America (BAC) were big losers. Russian banks will be hit by sanctions, which will ripple around the world’s financial markets. Everyone, including Wall Street titans like JPMorgan and foreign banks and regional lenders, was concerned about slower economic growth and flattening yield curves, with the Federal Reserve about to begin hiking rates. In recent weeks, the charts of JPMorgan, the S&P 500, and other financials have been significantly weakened.
Gold price reversed lower after surging 3% overnight, following a recent sell-off that had made it a haven. Shortly after the open, the stock increased to 70.37 after narrowly beating estimates early Thursday morning. Nagaraj Shetti, Technical Research Analyst at HDFC Securities, says the Nifty50 broke through the crucial 16,800-16,700 level with a long bear candle on the daily chart, with a vast gap-down.
Russian Stock Market Index
World leaders clinched their seats this morning after Russian President Vladimir Putin announced he would strike Ukraine. Ukrainians were seen taking cover in metro stations in the capital city of Kyiv following the announcement, and blasts were heard from across the country.
Due to the invasion, Russia’s Moscow Exchange trading was suspended for nearly two hours on Thursday. According to reports, after trading on Moscow Exchange began at 10 am, Russian stocks dropped more than 50 percent.
Russian Stock Market Down
On Thursday, Russian stocks plunged to their lowest levels on record, erasing more than $150 billion in value following an attack on targets across Ukraine by President Vladimir Putin. With the dollar-denominated RTS and MOEX Russia Index, the two worst-performing markets globally are down about 50 percent from their October highs. After hearing of the invasion, investors fled equities worldwide. They searched for safe-havens.
Russian Stock Market Affect on Investors
After reports surfaced regarding Russian military action against Ukraine, investors turned jittery and pressed the panic button. Traders worldwide followed suit as somber moods swept the equity markets, resulting in all stocks being sold. Moreover, the escalating geopolitical tensions gave investors additional reasons to cut their positions further due to the expiry pressure.
The benchmark Nifty closed below the 200-day SMA for the first time in a long time, and a long bearish candle formed on the daily charts, suggesting that the market may continue to weaken shortly.
Because of the uncertainty hovering over the market, the index may trade between the highs of 16800 and 16000. A corrective pattern is taking place on the market, and it is expected to be completed between 16200 and 16000. Trades may encounter resistance at 16400 and 16500 on the intraday chart and support at 16100 and 16000 daily.
Russian Stock Market Live Today
After dropping 3.1% the day before, the MSCI Asia-Pacific Index of shares gained nearly 1% on Friday. Cboe Volatility Index (VIX) slid from a one-month high level after the S&P 500 closed 1.5% higher in New York. Despite a three-basis point drop on Thursday, benchmark 10-year Treasury yields were little changed. According to Reuters, there have been delays in shipments of sunflower oil from the Black Sea region to India. New purchases have been halted after ports stopped operating after Russia invaded Ukraine; four dealers told the news agency.
The Indian buyers have been forced to substitute soy oil and palm oil for March and April shipments as it is unclear when Ukraine and Russia will resume loading their cargoes – worth $570 million at current prices. Approximately 60% of world sunflower oil is produced in the Black Sea region, and 76% of exports go to India. Malaysian palm oil and U.S. soybean oil futures could reach new highs as a result of New Delhi’s switch to alternate oils. Indian dealers say 130,000 tonnes of Black Sea sun oil have been loaded in February, but 510,00 tonnes from February to March have still not been loaded.
Dow Jones Today: Russian Invasion, Oil Prices
Before Tuesday’s market open, Dow Jones futures rose 0.1% vs. fair value and S&P 500 futures were up 0.1%. Nasdaq 100 futures moved down 0.25% vs. fair value. Remember that overnight action in Dow futures and elsewhere doesn’t necessarily translate into actual trading in the next regular stock market session.
Among exchange traded funds, the Nasdaq 100 tracker Invesco QQQ Trust (QQQ) fell 3.7%, and the SPDR S&P 500 ETF (SPY) lost 2.9% Monday.
The 10-year Treasury yield rose to 1.75% Monday, after closing at 1.72% on Friday.
U.S. oil prices climbed 3% Monday, as West Texas Intermediate crude settled around $119 a barrel, its highest close since Sept. 2008, per Dow Jones Market Data. On Sunday, Secretary of State Antony Blinken said that the U.S. and its allies are considering a ban on Russian oil and natural gas imports after the country’s attack on Ukraine.
Russia continued to bombard Ukrainian cities, with low-level negotiators from both sides meeting for a third round of talks on Monday. Negotiators agreed on some plans to help people trapped in the fighting, but there was little other progress regarding a cease-fire. Russia’s top diplomat is scheduled to meet with his Ukrainian counterpart in Turkey on Thursday.