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Russia-Ukraine Crisis Triggers Black Monday

By Kevin BeckmanMarket OverviewJan 24, 2022 09:28AM ET
www.investing.com/analysis/russiaukraine-crisis-triggers-black-monday-200615722
Russia-Ukraine Crisis Triggers Black Monday
By Kevin Beckman   |  Jan 24, 2022 09:28AM ET
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Global markets face an abysmal start to the week after a solid sell-off on Wall Street witnessed on Friday. Following some signs of stabilization earlier in the day, global equity markets were hit by a widespread sell-off, thus pushing the safe-haven dollar north across the board.

In Europe, stocks are suffering double-digit losses, with the Stoxx Europe 600 Index giving up nearly 3%, trading at late-November lows. US stocks are also lower ahead of the opening bell as investor sentiment worsens. The NASDAQ is leading losses again today.

The bearish pressure in stock markets and risk assets, in general, has been deteriorating amid the persistent worries about policy tightening from the Fed against the backdrop of stubbornly high inflation. The ongoing pandemic also weighed heavily on risk trends.

However, the key driver behind the Black Monday event is the deepening geopolitical crisis as the situation along the Russia-Ukraine border is getting worse. Of note, Russian stocks also sank dramatically today while the ruble plunged to its lowest level in more than a year, both on a stronger dollar and geopolitics.

Furthermore, oil prices retreated from the area of seven-year highs to mid-January lows around $85.30/bbl. The magnitude of the global sell-off suggests the rising tensions between Russia and Ukraine aren’t fully priced into the markets, with more profound losses lying ahead as the crisis deepens. Last week, Washington threatened heavy sanctions if Russia invades Ukraine.

Meanwhile, NATO is sending ships and jets to Eastern Europe. Today, the US and the UK have ordered some diplomats and their families to leave Ukraine, citing the threat of Russian invasion. Australia has also started a partial evacuation of its embassy in Kyiv. Other countries are also discussing possible evacuations.

Russia-Ukraine Crisis Triggers Black Monday
 

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Russia-Ukraine Crisis Triggers Black Monday

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Comments (2)
Jeff Ridge
Jeff Ridge Feb 24, 2022 11:52AM ET
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with the now engaged Russian advancement into Ukraine, any predictions on Crypto directions?
Jeff Ridge
Jeff Ridge Feb 24, 2022 11:52AM ET
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with the now engaged Russian advancement into Ukraine, any predictions on Crypto directions?
 
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