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The deepening Ukraine disaster has despatched world shares tumbling and crude oil surging. Final night time, Russian president Vladimir Putin ordered his army to enter the Russian-controlled areas of southeast Ukraine. In a prolonged televised tackle, he had recognised the territories of Donetsk and Luhansk as unbiased states.
Washington, European and different nations have condemned the transfer and threatened to impose robust sanctions.
Boris Johnson is chairing a gathering of the UK’s emergency Cobra committee this morning to log out a package deal of sanctions towards Russia. The preliminary indicators had been that the package deal would goal “these complicit within the violation of Ukraine’s territorial integrity”.
You’ll be able to learn extra on our Ukraine disaster reside weblog.
Monetary markets are in for a torrid day. In Asia, Japan’s Nikkei misplaced 1.7%, Hong Kong’s Grasp Sing tumbled 2.9%, the Shanghai Composite Index fell simply over 1% and South Korea’s Kospi dropped 1.35%.
European and US markets are additionally braced for heavy losses on the opening bell.
On oil markets, Brent crude is marching in the direction of $100 a barrel amid provide fears. It has gained greater than $2, or 2.2%, to $97.51 a barrel whereas US gentle crude has jumped $3.60 to $94.67 a barrel, a acquire of almost 4%.
Viktor Szabo, an rising market portfolio supervisor at abrdn in London, instructed Reuters final night time:
It’s in all probability an understatement to say that it will likely be an unpleasant day [on the markets]. I hoped we weren’t going to get right here, however this can be a important step.
Russian markets had been nonetheless buying and selling when Putin introduced his determination reside on tv following telephone calls to the leaders of Germany and France.
The rouble dropped 3.3%, falling previous 80 towards the greenback, whereas Moscow’s inventory markets plummeted to their lowest stage in over a yr. The dollar-denominated RTS index ended the day 13.2% decrease whereas the rouble-based MOEX Russian index misplaced 10.5%.
- 9am GMT: Germany Ifo enterprise local weather survey (forecast: 96.5)
- 9am GMT: Italy inflation closing for January (forecast: 4.8%)
- 10.45am GMT: Financial institution of England deputy governor Dave Ramsden provides speech
- 11am GMT: CBI Industrial developments survey for February
- 2pm GMT: US Home costs for December
- 2.45pm GMT: US Markit PMIs for February (manufacturing, providers and composite)
- 3pm GMT: US Client Confidence for February (forecast: 110)