The performance of Wall Street futures on Monday was in deep decline due to rising tensions between Russia and Ukraine. Commodity prices are rising. Brent crude oil is 4% more expensive, and natural gas is more than 8% more expensive.
Contracts for the S&P 500 are down 2%, the Dow Jones Industrial is down 500 points, or 1.64%, and for the Nasdaq. by 2.59%. The Wall Street session did not take place on Monday due to the president’s holiday.
Commodity prices are rising. Brent crude rose more than 4 percent to $97.35 a barrel, and West Texas Intermediate crude rose 3.6 percent to $94.30 a barrel. Natural gas gains more than 8 percent.
On Monday, Russian President Vladimir Putin issued a decree on the recognition of the independence of the so-called people’s republics – Donetsk (Democratic People’s Republic of Korea) and Luhansk (LPR), created by pro-Russian separatists in Donbas and with their leaders, signed agreements on friendship and cooperation.
The signing ceremony was broadcast on state television on Monday. Shortly before that, Putin’s speech was broadcast in which he announced that he had decided to recognize the independence of the Democratic Republic of the Congo and the LPR.
Soon, Vladimir Putin instructed Russian forces to “keep peace” in eastern Ukraine. This was reported by the Associated Press, citing the Kremlin’s website.
Russia’s conflict with Ukraine has had a negative impact on the markets for some time. Last week, the Dow Jones lost 1.9% overall, the S&P fell 1.6% and the Nasdaq fell 1.8%.
Shares on the Moscow Stock Exchange fell at the open on Tuesday, a day after Russia recognized the independence of the so-called people’s republics of Ukraine’s Donbass. The ruble weakened again against the dollar and the euro.
The dollar exchange rate rose to 80.03 rubles for 1 US dollar, and the euro exchange rate rose to 90.51 rubles for 1 euro. The US currency broke the 80 rubles barrier to the dollar on Monday evening.
Shares of Russian companies are cheaper, including Rusal and Yandex. Those are decreases of between 3.5 and 4%, much lower than they were on Monday, when rates were dropping in anticipation of Russia’s decision to recognize Donbass.
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