Global traders rushed to react to the fallout from Russia’s failed uprising yesterday as the ruble fell to a 15-month low against the US dollar.
Commodity costs in oil and wheat and defensive trading stocks were particularly important, with some big strikes in early buying and selling.
The experts additionally tried to determine how the cases might affect inflation and interest rates.
Georges Lagarias, Chief Economist at Mazars, stated: “Russia is essential to the global supply chain as a serious supplier of electricity and exporter of goods.
Further instability could in principle contribute to inflationary pressures, assuming that the supply chain problems are behind us.
Rebound: The ruble eased to 87.23 near the mark, before strengthening to 84.25
Russia’s invasion of Ukraine over the past 12 months has driven up electricity and food costs, increased cost-of-living pressures and reshaped European trade.
However, due to concerns about progress in the world’s largest economies, the United States and China, the value of a barrel of Brent crude oil rose by 60 cents to $74.45.
Phil Flynn, an analyst at Price Futures Group, warned that political instability in Russia could exacerbate the supply shortage.
Elsewhere, Chicago wheat futures, the global benchmark for the commodity, hit four-month highs on concerns over the situation in Russia, a major exporter, before resuming gains.
And defensive traders downgraded stocks that have scored big because of the incursion.
Shares in BAE Systems fell 2%, while shares in Italy’s Leonardo and France’s Dassault and America’s Lockheed Martin fell.
The value of the ruble fell to 87.23 against the greenback earlier than strengthening to 84.25.
