The Dow Jones Index was down by more than 700 points as markets processed news of Russian rockets and airstrikes within neighboring Ukraine.
The Russian attack on Ukraine was preceded by the announcement of a special military operation by Russian president Vladimir Putin at dawn to “demilitarize Ukraine” and avoid de creation of a “hostile anti-Russia” on its borders.
The military invasion caused prices of metals and oil to spike upwards with Brent Crude crossing the $100 per barrel line to reach $103 per barrel in late morning trading. In Europe natural gas futures surged by 30%.
Metals and commodities supplied by Russia were sharply affected. Palladium, 35% of which is produced in Russia, saw a more than 7% price rise. Aluminum prices rose by more than 3%.
These price rises come as the world is already in the grip of unprecedented global inflation with US consumers alone facing a 40% year-over-year price jump in gasoline prices in January.