Financial Markets Shaken by Ukraine Invasion... Russian Stock Market Plummets 33%

[Asia Economy New York=Special Correspondent Joselgina] On the 24th (local time), the financial markets were also hit hard by the news of Russia's invasion of Ukraine. The MOEX index, Russia's representative stock index, closed down by a staggering 33%. With Western sanctions expected to become even stronger, the stocks of Russian state-owned companies such as Gazprom, VTB, and Sberbank showed a sharp decline of around 40%.

According to CNN and others, the MOEX index closed at 2058.12, down 33.28% from the previous close. During the session, the MOEX index plunged as much as 45%. Another representative stock index, the RTS index, closed the session down 39.44% at 742.91. The RTS index also fell to as low as 624.75, a drop of more than 48%, before recovering to the 700 level in the afternoon, reducing the extent of the decline.

By individual stocks, those listed or expected to be listed on the Western sanctions list experienced the largest declines. The stock price of Gazprom, Russia's state-owned gas company, closed down 38.5%. The stocks of Sberbank, Russia's largest bank, and the state-owned bank VTB also fell more than 40%. Rosneft, Russia's largest energy conglomerate, also plunged 40%.

The value of the Russian currency, the ruble, also plummeted to an all-time low. It fell by as much as 7% against the US dollar.

Major stock markets including Europe also slid. On this day, Germany's DAX index closed at 14,052.10, down 3.96% from the previous day. France's CAC40 index and the UK's FTSE index also closed lower by 3.83% and 3.88%, respectively.

The US New York stock market is also showing a downward trend. As of 12:36 PM Eastern Time, the Dow Jones Industrial Average on the New York Stock Exchange (NYSE) was trading at 32,434.84, down 2.10% from the previous close. The S&P 500 index, centered on large-cap stocks, was down 1.23%, and the Nasdaq index, focused on technology stocks, was down 0.29%.

Investors focused on the news late the previous night that Russia had launched simultaneous invasions in Ukraine. As a result, risk-asset aversion grew in the market, causing stock prices to plunge and a pronounced flight to safe-haven assets. The Chicago Board Options Exchange (CBOE) Volatility Index (VIX), known as Wall Street's fear gauge, reached an intraday high of 37.79, approaching the yearly high of 38.94.

Meanwhile, Russian President Vladimir Putin announced late the previous night that a special military operation would begin in the Donbas region of eastern Ukraine. Immediately afterward, missile strikes were launched on airports near Kyiv, the capital of Ukraine, and major cities, and Russian troops stationed in Belarus in northern Ukraine crossed the border and advanced into Ukraine.

This content was produced with the assistance of AI translation services.