Global Financial Markets Reaction to Russia’s Invasion of Ukraine

Russia’s invasion of Ukraine has roiled financial markets around the world, sent energy prices go through the roof, while pushing down the major indices and stocks. As a result, the Russian’s rouble dived to fresh record lows on Monday amid Western nations imposition of harsh sanctions against Russia, including Russia banks and SWIFT global payments system, companies, and officials, focusing on freezing Vladimir Putin’s assets.

Consequently, in an emergency move to support the rouble, Russia’s central bank raised its key interest rate to 20% from 9.5%, after its currency slipped almost 30% to record lows against the US dollar. In addition, Russian ETF, VanEck (RSX) plunges toward 13-year low at $11.73 (-24.81%), the lowest price since March 2009.

With Russia being the third largest oil producer and ranks as second largest natural gas producer, energy prices shot up. Brent and WTI oil soared to $100 per barrel during the first day of Russian invasion and has inched lower today at $98.05 and $95.08 at 1:22 PM, respectively.