Shares Dive, Oil Soars After Russian Action in Ukraine
BEIJING (AP) — Stocks plunged and oil prices surged by more than $8 per barrel Thursday after Russian President Vladimir Putin launched military action in Ukraine, prompting Washington and Europe to vow sanctions on Moscow that may roil the global economy.
Market benchmarks in Europe and Asia fell by more than 4% as traders tried to figure out how large Putin’s incursion would be and the scale of Western retaliation. Wall Street futures sank, indicating that U.S. shares were likely to retreat after trading opens.
Energy prices surged, fuelling inflation fears. The spot price in Europe for natural gas, for which the continent relies on Russia to supply, jumped as much as 31%.
The ruble sank 7.5% against the dollar.
Financial markets are in a “flight to safety and may have to price in slower growth” due to high energy costs, Chris Turner and Francesco Pesole of ING said in a report.
In Brussels, the president of the European Commission said Thursday the 27-nation European Union planned “massive and targeted sanctions” on Russia.
“We will hold President Putin accountable,” Ursula von der Leyen said.
Story by JOE McDONALD for the Associated Press
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