Russia’s stock market plunged 11 percent yesterday, the biggest drop in more than five years.
Moscow’s Micex index fell 155.90 points to 1288.81, the largest drop since November 2008, Stephen Kirkland and Callie Bost reported for Bloomberg News yesterday.
“The ruble weakened 1.4 percent to a record-low 42.6334 against the dollar-euro basket used by the central bank to manage the currency,” they reported.
“It’s bad news all around, with Russian and Ukrainian assets to suffer as a result and possibly also global markets, as this is now a global crisis situation,” Tim Ash, chief emerging-markets economist at Standard Bank Group Ltd. in London, said in an e-mail to Bloomberg’s Jason Corcoran for this story.
“Russia raised its main interest rate the most since 1998 as the currency plunged to a record and investors pulled money from the stock market on concern that President Vladimir Putin will invade Ukraine,” Vladimir Kuznetsov and Olga Tanas reported for Bloomberg News.
The United States and other major industrialized nations have condemned Russia’s growing military presence in Ukraine as a violation of Ukraine’s territorial integrity. Secretary of State John Kerry, who has raised the possibility of sanctions against Russia, plans to arrive today in Kiev, the Ukrainian capital.