Russia-Ukraine War Trembles Stock Market Worldwide As Ruble Falls By Nearly 30%

Russia's invasion of Ukraine has profoundly affected the stock market worldwide. As the world had noticed the potential impact of inflation, energy supplies, and other areas, markets hung wildly. The Russian currency ruble has taken a steep fall, nearly falling off by 30 per cent.

Impact On Europe

Following the imposition of new sanctions on Russia, European stocks fell, oil prices rose, the ruble fell, and investors flocked to the dollar and highly rated government debt.

Russian President Vladimir Putin placed his country's nuclear forces on high alert, and western powers levied sanctions on Russia's central bank, which has resulted from Stoxx 600 regional share index fell 1.6 per cent, the Xetra Dax in Germany fell 1.8 per cent, and the FTSE 100 in the United Kingdom fell 1.5 per cent.

Impact On Russia

Russia's currency fell to a record low against the US dollar on Monday, as the country's financial system struggled to cope with crippling sanctions imposed by Western countries in response to Ukraine's invasion.

The United States, the European Union, the United Kingdom, and Canada announced on Saturday that they would expel some Russian banks from SWIFT, a global financial messaging service, and "paralyse" Russia's central bank's assets, as reported by CNN.

Japan has joined efforts by the United States and other Western countries to impose sanctions on Russia, including excluding some Russian banks from the SWIFT global payment system.

Impact On United States

Stocks in the United States have declined nearly 8 per cent this year, putting them on track for their worst start since 2009, and concerns about the escalating conflict in Ukraine have shook markets worldwide.

Even though Wall Street ended higher on Friday, with major indices up 1.5 per cent to 2.5 per cent, analysts predicted that markets would face selling pressure on Monday, as reported by Economic Times.

Although the war in Ukraine is unlikely to cause direct harm to Asia, higher energy prices are an unwelcome burden for oil-importing countries like Japan, especially as they struggle to recover from the pandemic.

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