Global markets are reacting to the extent of the Russian incursion into Ukraine, with US President Biden unveiling wide-ranging sanctions on Russia.
US Secretary of State Anthony Blinken warned that “Russia intends to encircle and threaten Kyiv”, the economic and cultural centre of the nation state, as it became clear that the Ukrainian government is no longer in control of the infamous Chernobyl nuclear reactor.
“The entire international community now plainly see Russia’s complete abandonment and abdication of the commitments it made to the world – and we will never forget,” he added.
Sanctions imposed by Western governments
Western governments were swift to impose sanctions on the Russian regime, recognising that economics might be the least messy way to restore peace with nuclear players involved.
US president Joe Biden has unveiled a “first tranche” of sanctions against Russia, with targets including Russian state-owned banks, trading in five Russian oil tankers and container ships and oligarch elites. US banks and individuals are now banned form trading Russian sovereign debt.
EU foreign ministers banned Russian bond trades in the European market.
The UK has frozen assets of several named Russian individuals and businesses and imposed travel bans.
For its part, Australia imposed sanctions too. While unlikely to have a material impact on the conflict, these include the banning of activities of several named Russian individuals living in Australia.
Global markets continue to brace
In response to the outbreak of fighting, global markets braced for a widening of the conflict.
Investors fled risk assets and retreated to safe havens.
On Thursday, Brent crude soared past $US100 a barrel for the first time since 2014.
Base metal prices rose by up to 3.4% on Thursday with aluminium leading the way. Russia produces around 6% of the world's aluminium.
The gold futures price rose by US$15.90 or 0.8% to US$1,926.30 an ounce. Spot gold was trading near US$1,895 an ounce in afternoon US trade.
Aussie markets, dollar down
The Aussie dollar fell from a high of around US72.00 cents to bottom out at US70.94 cents before resting weakly at US71.75 cents in afternoon US trade.
Iron ore fell by US$1.10 or 0.8% to US$136.95 a tonne.
A dumping of global equities saw the ASX record its biggest single-day loss since late 2020, though this morning saw a weak uptick in activity as trading kicked off.
At close of play on Thursday the S&P/ASX 200 Index had fallen by 3%, taking $73 billion in value out of investors’ pockets, while it looks like Wall Street is facing a bare market when trading resumes.
Perhaps unsurprisingly, the Moscow Exchange is suspended until further notice.