Global stock markets tumbled and crude oil prices surged to $99 per barrel on Tuesday after Russia ordered troops into parts of eastern Ukraine.
Wall Street also headed lower as traders returned from the holiday weekend. The Dow (INDU) dropped about 200 points, or 0.6%. The S&P 500 (SPX) was down 0.4%, while the Nasdaq (COMP) shed 0.7%.
European markets dropped in early trading. The FTSE 100 (UKX) dipped 0.4% in London, while France’s CAC 40 (CAC40) shed 0.8%. Germany’s DAX (DAX) tumbled 1.4%. Russian stocks dropped 6.9%, after crashing more than 10% Monday, and the ruble weakened against the dollar for the fourth consecutive trading session.
Japan’s Nikkei 225 (N225) fell 1.7%, while China’s Shanghai Composite (SHCOMP) dropped 1%. Hong Kong’s Hang Seng Index (HSI) fell 2.7%, its biggest daily loss in five months.
Russian President Vladimir Putin has ordered Russian troops into two separatist pro-Moscow regions in eastern Ukraine after recognizing their independence on Monday. The move appears to be the opening salvo of a larger potential military operation targeting Ukraine, US and Western officials told CNN.
“It feels like the situation can dramatically escalate at any moment and that’s going to keep investors on edge for now,” wrote Craig Erlam, senior market analyst at Oanda, in a research note on Tuesday. “We may well be on the brink of something terrible happening and that’s continuing to feed into the negativity in the markets,” he added.
CNN
