Most markets reacted violently to Russia's decision to invade Ukraine earlier today, and adverse volatility continues to surge markedly. Commodities are soaring while stocks plunged in the pre-market session. Demand for safe-haven securities is now likely to jump. Check out our newest analysis of gold to learn more about that.
Early this morning, Russian President Vladimir Putin announced the commencement of a 'military operation' in Ukraine in a pre-recorded message. Hostilities erupted mere hours after Western security services cautioned that a Russian invasion within 48 hours was inevitable. This sent shockwaves across markets, causing crude oil and gold to soar over the last several hours.
The sharpest upticks were observed in the energy market, where natural gas broke higher towards the previous swing peak. Russia is the main exporter of gas to Europe, which is why the price of the commodity is so responsive to political uncertainty. Meanwhile, crude is probing the psychologically significant threshold at 100.00.
Gold's rally was also extended higher while the Nasdaq composite sunk even further down south. Russian stocks, too, were hit hard, with Bloomberg reporting a $180 billion wipe-out in several hours. This represents the biggest decline of Russian stocks on record.
Speaking about the Donbas region, Putin asserted that 'you cannon look without compassion at what is happening there. It became impossible to tolerate it. We had to stop that atrocity, that genocide of the millions of people who live there and who pinned their hopes on Russia, on all of us'. He then went on to delineate the primary goal of the invasion as 'to demilitarise and denazify Ukraine, as well as bring to trial those who perpetrated numerous bloody crimes against civilians, including against citizens of the Russian Federation.'
U.S. President Joe Biden said that the entire responsibility for this escalation of tensions lies on Russia's soldiers and that the U.S. and its allies will 'will respond in a united and decisive way'.
Russia alone is responsible for the death and destruction this attack will bring, and the United States and its Allies and partners will respond in a united and decisive way.— President Biden (@POTUS) February 24, 2022
The world will hold Russia accountable.