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In our Market Monday insights, Prosperity Investment Management examines the latest developments across the globe's biggest financial markets - providing you with all the latest information you need to know.
Following Russia’s large-scale invasion of neighbouring Ukraine, the country’s rouble has crashed to an all-time low in the wake of unprecedented international sanctions on Russian business and trade - aimed at crippling the country’s economy.
After sending forces into Ukraine on Thursday, Russian president Vladimir Putin continues his offensive in the face of a 41.5% plunge on the rouble’s value as markets opened on Monday morning.
The European Union, the United States & the United Kingdom have all introduced swathes of sanctions against Russia and President Putin personally. Alongside bans on Russian aircraft entering EU, UK and Canadian airspace and personal sanctions on some of Putin’s closest allies, a collective agreement was made to restrict the country’s access to the Swift international payment system - the most significant measure introduced so far that sees some banks cut off internationally.
Combined with asset freezes on much of the Central Bank of Russia’s foreign currency reserves, analysts at Rabobank in Singapore predict the rouble could collapse entirely as the country becomes further isolated from international markets.
Despite widespread condemnation for his actions, the Kremlin shows no sign of relenting. The United Nations estimates that 368,000 Ukranians have fled the country as Russian forces continue to advance through the country. Delegations from both Ukraine and Russia have arrived at the Ukraine-Belarus border to begin initial peace talks.
The knock-on effect of the invasion and subsequent sanctions is already being felt elsewhere - with UK petrol prices tipping beyond 150p per litre for the first time.
On Wall Street, Dow futures returned 490 points, or 1.4% lower, whilst oil prices surged. Delta Airlines has suspended a booking agreement with Russia’s flag carrier, Aeroflot.
Meanwhile, the Japanese government has also introduced sanctions of its own - beginning with visa suspensions and broadening in line with EU measures, now including export controls on semiconductors and other high-tech products alongside asset freezes.
