Global stocks plunge as Russia attacks Ukraine
CNN
By Laura He, CNN Business
Global stocks plunged after President Vladimir Putin launched a military attack on Ukraine, drawing condemnation from the West and making punishing sanctions all but certain.
European stocks tumbled in the opening minutes of trading on Thursday. The FTSE 100 fell 2.5% in London, while France’s CAC 40 dropped 4% and Germany’s DAX 30 shed 4%. Russian stocks crashed, with the country’s main index dropping 45%.
In Asia, Hong Kong’s Hang Seng Index dropped 3.2%, its biggest daily loss in five months. Korea’s Kospi fell 2.6%. Japan’s Nikkei 225 lost 1.8%. China’s Shanghai Composite moved 1.7% lower.
US stocks futures also tumbled. Dow futures were down 660 points, or 2%. S&P 500 and Nasdaq futures were down 2% and 2.5% respectively.
The pain spread beyond stocks. The Russian ruble briefly crashed about 10% to a record low of 90 against the US dollar.
Brent crude, the world benchmark, climbed above $100 a barrel for the first time since 2014. US crude jumped 5.4% to $97.05 a barrel.
The turbulence comes after Putin announced a military operation and CNN teams in Ukraine reported explosions.
There were reports of troops crossing the border to the north and south, and explosions in multiple cities including the capital Kyiv. Ukrainian President Volodymyr Zelensky said in an emotional speech that his country country would defend itself.
“The world is shocked as Russia launches a major military offensive against Ukraine,” analysts for ING wrote Thursday in a research note. “Financial markets are predictably witnessing a flight to safety and may have to price in slower growth on the further spike in energy prices,” they added.
Investors will watch for the West’s response to Russia’s aggression, which is likely to include punishing sanctions.
“The question will then be which Russian financial institutions are targeted for severe financial sanctions,” the ING analysts said.
— Matt Egan contributed reporting.
The-CNN-Wire
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