(Bloomberg) Shares of Russian gas processor Gazprom plunged 30% on Thursday while the country’s MOEX stock index edged lower by 41% following Moscow’s attack on Ukraine.
The 41% decline on the stock index is the highest on record, underlining market panic after Russia launched missiles and air attacks targeting the Ukrainian capital.
The market panic also saw the ruble fall up to 6.4% against the dollar, to the lowest since 2016, with the Moscow Exchange halting trading.
Russian President Vladimir Putin justified the action to invade Ukraine, saying that the US and its allies had crossed Moscow’s red line through an expansion of the NATO alliance.
The attack saw commodities market rise, with the Brent oil rising above $100 a barrel, the first time in about eight years.
The attack, which has now triggered one of the worst European security crises since the Second World War, also gripped markets elsewhere. US 10-year Treasury fell up to 13 basis points to 1.86%, while iTraxx Europe, which tracks risks linked to investment grade credit in the continent, rose to the highest since May 2020.
In the currency markets, the dollar and yen rose, while the euro fell as investors rushed for safe-haven assets. Gold also rose.
The market now awaits moves by major economies against Russia following the attack, with the US president Joe Biden saying the west will institute “severe sanctions” against Moscow.
GAZP: MCX is currently down -27.57%.
