Investors sought to reduce the risk caused by the start of the West’s financial war against Russia, due to the invasion of Ukraine, and sold their shares on US stock exchanges, leading to a fall in the prices of these securities on Monday (28).
At around 1 pm, the S&P 500 was down 0.54%, while the Dow Jones was down 0.66%. The Nasdaq index, of technology companies, was up 0.43%.
The move followed the same reaction from investors in Europe, where the main stock markets opened lower.
In Brazil, the Stock Exchange remains closed on Monday and Tuesday (1) because of the Carnival holiday. Stock trading in the local market will resume on Wednesday (2), from 1 pm.
The Dow Jones Brazil Titans 20 ADR Index traded on the American market, which reflects the performance of the main ADRs (American Depositary Receipt) of Brazilian companies, operated with a gain of 0.12%.
Russia’s central bank announced on Monday that it will raise its benchmark interest rate by 10.5 percentage points, raising it to 20%, to face severe economic sanctions enacted by the West to punish Russia for its invasion of Ukraine.
“The Bank of Russia will make further decisions on the reference rate based on the assessment of the risks associated with external and internal conditions and the response of the financial markets to these risks,” said the institution, which is trying to defend the ruble, which has depreciated sharply. since the beginning of the Russian invasion of Ukraine.
The announcement, however, was not able to prevent the Russian currency from having a new session of strong depreciation on Monday, after the United States banned all transactions with the Central Bank of Russia.
On Monday, the Russian currency recorded a depreciation of about 30% against the dollar. The Russian Central Bank also informed that trading on the local Stock Exchange will be suspended on Monday and Tuesday (1), with a decision on the eventual resumption of operations to be communicated on Wednesday (2).
The two economic sanctions imposed by the United States and its allies on the Russian central bank and other key sources of wealth are likely to increase Russian inflation, hurt its purchasing power and reduce investment, U.S. officials said on Monday as the new measures were announced. .
As investor tensions mount, oil prices soared on Monday, with the possibility that sanctions could cause serious disruptions to Russian exports of the commodity.
A barrel of Brent rose 2.86% to US$100.73 (BRL 517.63) after reaching USD 105.07 (BRL 539.93) a barrel in early trading.
with Reuters
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