From Stock Market Mayhem To Oil Price Surge - How The Russia-Ukraine War Is Impacting World Economies
Let¡¯s have a look at how this Ukraine-Russia war has already begun impacting world economies in more ways than one.
From UK PM Boris Johnson announcing the "largest ever¡¯ set of sanctions against Russia to India¡¯s PM Narendra Modi urging Russian President Vladimir Putin to end violence, it's all happening amidst the Russia-Ukraine war which began yesterday.
But besides the wide range of actions being taken by various countries, it's the economies of multiple nations worldwide that have taken a hit amidst the Ukraine-Russia war.
Let¡¯s have a look at how this war has already begun impacting world economies in more ways than one.
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1. Oil Prices Hit 7-Year High After Surging Past $100 A Barrel
After Russia declared war against Ukraine, oil prices have surged past the $100 (?74) a barrel mark, to hit their highest level in more than seven years. Russia is the second biggest exporter of crude oil, besides being the world's largest natural gas exporter.
The UK imports 6% of its crude oil and 5% of its gas from Russia, whereas India is the world¡¯s third-largest oil importer, but about 1% of this is from Russia. But as per various analysts, if the crude oil spike continues for a prolonged period, it could put inflationary pressure on India and spike the oil import bill.
2. Gold Prices Surged To Highest Mark Since Late 2020
Yesterday, the gold prices at Multi Commodity Exchange (MCX) soared to its highest levels in more than a year. MCX gold rate surged ?2,250 to hit the ?52,630 per 10 gram mark, while silver jumped 5% to ?67,926, as per Livemint. According to market experts, this sharp rise in gold, indicating the highest price in about a year, is because of the escalating tension in the Russia Ukraine crisis. Prices of gold could touch the ?55,000 mark this year and ? 62,000 in the next year, Business Today reported.
Also Read: Amid Crisis, Pakistan Govt Planning To Borrow People's Gold For Help
3. Crypto Market Sees $242M Sell-Off Within Few Hours Of War
Crypto markets saw over $242 million in liquidations in early Asian hours yesterday, as global markets reacted to Russian troops moving further into Ukraine in what Russian President Vladimir Putin called a "special military operation" but later declared war.
Bitcoin-tracked futures saw $72 million in liquidations ¨C the most among all cryptocurrencies ¨C followed by ether futures; liquidations at $70 million, as per CoinDesk.
AP Photo
4. Stock Markets Bleed Red
The Russia-Ukraine tensions jolted the markets across the globe. Investors lost over ? 13 lakh crore on BSE yesterday, with the market cap of BSE-listed firms falling by ? 13.32 lakh crore after investor wealth declined to ? 242.28 lakh crore against ? 255.68 lakh crore in the previous session.
The two national indices of India suffered the damage. Sensex ended 2,702 points lower at 54,529 yesterday, and Nifty slumped 815 points to 16,247. Also, as per ET, 97 Stocks on BSE 500 Index reached their 52-week low mark yesterday due to the nosedive in the stock market.
Even Russia¡¯s stock market went into crisis, as it wiped out $250 billion in value. As the military attacks across Ukraine prompted emergency central bank action, Russian assets were nosedived.
After dipping more than 50% after resuming trade after a 2-hour suspension yesterday morning, Russian stocks again nosedived around 45% in the afternoon session.
Also Read: F(N)AQ: Why Investors Suffer Losses During Market Crash?
5. Assets Of All Russian Banks Frozen By The UK
UK PM Boris Johnson told the House of Commons that major Russian banks will be excluded from the UK financial system, describing it as "the largest and most severe package of economic sanctions that Russia has ever seen".
Russia's national airline Aeroflot will be banned from landing in the UK.
Amongst a wide array of sanctions announced by the UK PM against Russia, some include: all major Russian banks will have their assets frozen and be excluded from the UK financial system, legislation will stop major Russian companies and the state from raising finance or borrowing money on UK markets and asset freezes will be placed on 100 new individuals or businesses
Besides all this, even the war-hit Ukraine¡¯s Central Bank too announced the suspension of using the electronic money and placed caps on cash withdrawals amidst the Russian invasion.
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