- US equities futures fell, but bonds and commodities such as oil surged, as market volatility grew following the announcement of more penalties against Russia for its invasion of Ukraine.
- Contracts for the S&P 500 and the technology-heavy Nasdaq 100 were both down over 2%. European futures have dropped by 4%. Oil and palladium prices soared, with Brent crude resuming its ascent beyond $100 per barrel.
- The demand for safe havens was highlighted by rises in a dollar index, gold, and treasuries. The euro sank on concerns about the economy of Europe, which is reliant on Russian oil. As Hong Kong struggled, an Asia-pacific equity index fell. Bitcoin recovered some of its losses and is again trading near $38,000.
- By preventing its central bank from using foreign reserves to dull sanctions, the tougher Western sanctions further alienated commodity-rich Russia from global finance. They also restrict some Russian lenders from SWIFT messaging system, which supports trillions of dollars in transactions.
- The ability of the Bank of Russia to backstop Russia's financial system and the currency, which has dropped roughly 30% in offshore trading, is now being questioned. There's also a chance that monetary authorities may have to flood the market with dollars to plug the gaps in international banking left by the quick move.
