Growing fears that Russia will attack Ukraine sent global stock markets to their lowest in three weeks. Not only that, oil and gold prices surged on Monday (21/2/2022).
According to Reuters, Russian troops killed a group of five intruders who crossed the country's southwestern border from Ukraine on Monday. Kyiv has denied the accusations.
Kyiv and the West fear that the border incident near eastern Ukraine could be used as a pretext for Moscow to attack its neighbour. Russia denies the plan.
Markets are on high alert for any escalation in the crisis.
Reuters data showed the MSCI world index fell 0.4% to 700.11. Meanwhile, the S&P 500 index fell 0.66%. Nasdaq futures fell 1.2%.
European stock markets also fell 1.65% to their lowest level in more than four months. British stocks fell 0.5%. Shares of companies exposed to Russia and Ukraine fell drastically.
Anxiety about war between Russia and Ukraine also affects world currency markets. The Russian ruble, for example, weakened nearly 3% against the dollar. The Russian stock index also slumped 9% to its lowest in 14 months.
On the other hand, the US dollar index fell 0.1% to 95.668, well below its 1.5-year high of 97.441 hit last month.
The euro was little changed at the level of US $ 1.1327. The yield on the German 10-year government bond, which is seen as the safest asset in Europe, hit two-week lows at 0.185%.
On the oil market, the price of Brent crude oil rose by US$ 1 to US$ 94.41 due to the Ukraine crisis. Meanwhile, the price of US crude oil also rose by US$ 1 to US$ 91.98.
Oil prices suffered their first weekly loss in two months last week, dropping from a seven-year high, amid signs of progress on the Iran nuclear deal that could release new supplies of oil to the market.
Meanwhile, gold prices have benefited from its status as one of the oldest safe havens, rising to a nine-month high of US$ 1,908 per troy ounce, before dropping back to as low as US$ 1,893 per troy ounce.
This condition comes amid news that US President Joe Biden and Russian President Vladimir Putin have agreed in principle to hold a summit on the Ukraine crisis.
The Kremlin said there were no concrete plans for a summit, although a call or meeting could be arranged at any time.
"The Kremlin made clear today that they are in no rush for a summit with Biden," said Tim Ash, strategist at BlueBay Asset Management.
British foreign secretary Liz Truss said she was already stepping up preparations with allies for the worst-case scenario. He also added that a Russian invasion of Ukraine was very likely.
