Financial markets LIVE: UK panic over Ukraine war and US interest rates – shares plummet

Russia could face ‘economic collapse’ over Ukraine says expert

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Wall Street stocks fell sharply as they opened on today after the US State Department ordered diplomats’ family members to leave Ukraine on Sunday.

The index of mid-sized companies in the UK has also tumbled by 3.25 percent today, down 723 points at 21540 points.

Boris Johnson warned Russian President Vladimir Putin that an invasion of Ukraine would be a “disastrous step” which could see Russia bogged down in a bloody and protracted conflict.

It comes as the Foreign Office began to pull some staff from the British embassy.

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KEY EVENTS

  • Wall Street falls further17:13

    • Bitcoin slumps to six month low

    Bitcoin has also tumbled to its lowest level in six months amid fears of a Russian attack on Ukraine. 

    The largest cryptocurrency was last down 5.4 percent at $34,310 after earlier dropping to $32,951, its lowest price since July 23, taking losses from its all-time high of $69,000 hit in November past 50 percent.

    More than $400 million in crypto assets has been liquidated in the past 24 hours, according to data from Coinglass,  with Bitcoin trades accounting for $141 million of that total.

    Mark Elenowitz, president of Horizon, a firm that services securities exchanges said: “Bitcoin will face headwinds going back up until the macroeconomic conditions change.

    “Generally speaking, when rates are hiked, we could see more sell-offs of seemingly risk-on assets like bitcoin.”

    FTSE closes at worst level since November

    The Financial Times Stock Exchange (FTSE) has closed at its lowest level for a month. 

    The index ended Monday down 1.6 percent, or 197 points at 7297. 

    The worst slump since the end of November.

    FTSE Mid-250 index also ended the day falling to 810.74, its worst day since September 2020.

    Wall Street falls further

    Wall Street continues to fall as Nasdaq Composite falls 3.84 percent and Dow Industrials 2.53 percent. 

    S&P 500, or Standard and Poor’s 500 index stumbled over 4 percent. 

    ‘Ukraine is really front of mind’, says market analyst

    Chief market analyst at CMC Markets Michael Hewson said “Ukraine at the moment is really front of mind”. 

    Analysts noted a reluctance among investors to pile back into equities that has rarely been seen in the post-2008 era of ultra-low interest rates and central bank-boosted liquidity.

    Mr Hewson said: “Over the last 12 years, buy-the-dip is the mentality for investors generally.

    “This the first time in the last 12 years, I’ve felt, that’s not the default position to be in.”

    Good afternoon

    Good afternoon I’m Francesca Edwards, I’ll be bringing you all the latest developments on financial markets.

    Please feel free to get in touch with me as I work if you have a story or tips to share! Your thoughts are always welcome.

    Email: [email protected]

    Twitter: @FrankieLEdwards

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