World markets experience a black Thursday due to the Russian invasion of Ukraine

The price of a barrel of oil exceeded US $ 100 for the first time in more than seven years on Thursday and world stocks sank after the launch of a military offensive by Russia against Ukraine.

Wall Street opened with heavy losses and its main Dow Jones index fell 2.46%, the expanded S&P 500 index fell 2.54% and the Nasdaq, of technology stocks, 3.45%.

European stock markets opened with sharp falls, which reached 5% in Frankfurt, but which were relatively tempered later.

The Frankfurt DAX fell 3.96% and the London FTSE fell 3.82%, while the CAC 40 on the Paris floor fell 3.83%.

The FTSE MIB of Milan fell 4.10% and the IBEX 35 of Madrid 2.86%.

The Russian ruble reached its historical low against the dollar (up 9%), before the intervention of the Russian central bank.

The negative trend was also installed in Asia. Hong Kong lost 3.21%, Tokyo closed with a drop of 1.81% and Shanghai, down 1.70%.

The price of a barrel of Brent from the North Sea for delivery in April –the reference in Europe– rose 7.69% to US$104.29.

In New York, West Texas Intermediate (WTI) for April delivery rose 7.52% to $99.

Russian President Vladimir Putin announced in the early hours of Thursday the start of a “military operation” in Ukraine. Kiev claims that it is a “large-scale invasion”.

“At this time it is impossible to bet on any scenario”, indicated Ipek Ozkardeskaya, an analyst at the SwissQuote investment company, for whom at the moment he reigns “panic in the markets”.

“We can only closely follow the latest developments and be prepared for more volatility”, he added.

Insurance assets appreciate

The threat of war has sparked fears in recent weeks about the supply of basic products, such as wheat and metals, as economies reopen after closures due to the coronavirus pandemic.

This Thursday, the price of cereals broke a record for operations in Europe and wheat rose to a maximum of 344 euros per tonne on the Euronext platform.

The price of wheat and corn — of which Ukraine is the world’s fourth largest producer — climbed sharply at the open, a few hours after Russia launched the invasion against Kiev.

Assets considered safe havens also appreciated, such as gold, which rose 2.43% to US$1,955.47 an ounce.

“Russo-Ukrainian tensions trigger potential demand shock [en Europa] and a larger one in supply to the rest of the world, given the importance of Russia and Ukraine in energy”, highlighted Tamas Strickland of the National Australia Bank.

For a Swissquote analyst, “The increase in energy prices is a big headache for Europe, because 40% of its natural gas and 30% of its oil come from Russia”.

As for natural gas, the reference market in Europe increased by 50% compared to the day before.

The crisis comes as governments around the world are struggling to contain inflation, fueled by growing demand from the reopening of the global economy.

Much of the attention is focused on the US Federal Reserve (Fed), whose authorities are preparing to raise interest rates in March to contain the increase in prices.