Worries that an invasion of Ukraine by Russia is imminent have pumped waves of volatility in markets
London – Europeâs major markets sank heavily at the open today as fears intensified over a potential Russian invasion of Ukraine, AFP reported.
Londonâs FTSE 100 index fell 1.6 per cent, Frankfurtâs DAX dropped 2.7 per cent and the Paris CAC 40 dived 2.9 per cent after sharp losses across Asia.
âWorries that an invasion of Ukraine by Russia is imminent have pumped waves of volatility in markets, with investors expecting higher fuel prices and more supply chain bottlenecks as a result of the conflict,â said AvaTrade analyst Naeem Aslam.
âPresident Joe Biden had a conversation with his Russian counterpart, President Vladimir Putin, but their dialogue failed to bear any fruit.â
Wall Street fell on Friday (11 Feb).
Fears of a conflict in eastern Europe also sparked a heavy selloff in Asia on Monday (14 Feb), while oil prices have rebounded sharply with Brent crude topping US$95 (RM398) per barrel â stoking fresh inflationary woes.
The prospect of a conflict compounded the gloomy mood after data Thursday (10 Feb) showed US inflation hit a forecast-busting 7.5 per cent in January, ramping up pressure on the Federal Reserve to hike interest rates by more than expected.
âJust as the storm of Covid appeared to be receding, the growing expectation of an invasion of Ukraine is the fresh threat now unnerving investors, with confidence plunging in many parts of the world,â said Hargreaves Lansdown analyst Susannah Streeter.
âWith worries that inflation is already running far too hot, the possibility Russia troops could move across the border has led to another surge in the oil price to above US$95 a barrel.
âEnergy markets are clearly on edge and if supplies are threatened there is a risk oil will shoot up even higher, adding to price pressures for companies.â