New Delhi: The World market has been affected immensely as several countries – including the US imposed sanctions on Russia.
The Russian ruble fell to fresh record lows on Tuesday while world stocks slid and oil prices jumped, as the West ramped up sanctions against Russia over its Ukraine invasion, with steps including blocking banks from the SWIFT global payments system.
European banks were hit hard, with those most exposed to Russia, including Austria’s Raiffeisen Bank, UniCredit, and Societe Generale, falling between 11 and 15%. The wider euro zone banking index lost 6.80 percent.
The inflation in Russia has raised and the government banks have been forced to increase their interest rate to 20 percent from 9.5 percent. Authorities in Russia advised export-focused companies to be ready to sell foreign currency as the ruble slid 32% before recouping about half its losses.
Markets are likely to remain choppy in the near term, analysts said. While valuations have fallen and some risks have been priced into the market, this is not a time to derisk, said Solita Marcelli, chief investment officer for the Americas at UBS Global Weather Management.
(SMIT SONI)