The start of the Russian and the Ukrainian war
Thursday morning was a dark day for Ukrainians and their citizens after the Russian military forces started their invasion. Sirens have been heard, and there has been news of an armed conflict in plenty of territories and regions, including military outposts and airports. Last night there was a report of multiple explosions in different cities, including the Ukrainian capital city of Kyiv.
With NATO and its allies’ condiment to these recent attacks, there are talks and new plans for new sanctions. The European official speakers announced that there would be aggressive sanctions, economic and political, against Russia. They also added that the new sanctions would be the biggest in their history, full economic sanctions.
Russian stocks recorded a sharp decline today and ended the day on one of the worst days in the Russian stock market this year. According to the Russian stock market report, the VanEck Russia ETF declined by 21%. The Russian ETF fund had previously had four negative falls, and that would be the fifth this year. That left it in a vulnerable position, and it’s just the start, because of the upcoming sanction that will surely hurt it more. The idea of the Russian ETF fund is to expose its economy to investors. That means an economic exposure in some senses. But the recent events will definitely affect investors and, by that, they will avoid Russian stocks. Gold and silver were both increased. In terms of what will happen in the next few days, the real estate market is expected to increase.
The global stock market also saw a sharp decline, following a sharp increase in energy prices. Hours after the Russian attack, the Dow Jones futures declined sharply. It was estimated that they declined by 700 points. Investors are terrified because of the worrying surges in energy prices; oil has surpassed the $100 as well as Brent crude. The S&P 500 had one of its worst days of the year only two days after confirming a correction. Today morning, the S&P index fell by 1.3%. That’s more than 12% in January. The correction is a must now.
Furthermore, other indexes experienced different degrees of falls and declines, including the Nasdaq composite, which was down by 0.5%. Hours after the attack, US President Joe Biden convened a meeting and stated that the US and its allies would respond to the threat as a united team.NATO is launching its tropes in the event of any further assaults or engagements. The European Union and its partners, including the U.S, will initiate sanctions against Russia.
Biden added that the U.S. sanctions will target the Russian economy and enter the country in a state where negotiations are on the table. On the other hand, Kremlin officials comment that Russia is ready to deal with any kind of sanction and its economy won’t get hurt, at least won’t take serious hits. According to the expert, this attack will push the economy down by 5% or even 6% in the next few days. The global stock market is already suffering from inflationary pressure and now the cut will get deeper.
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