Introduction: Peace should be the common pursuit of mankind.
Editors: Li Yutong, Wang Tingting, Lin Xiying
From: CCTV News (cctvnewscenter), CCTV Finance (cctvyscj), WIND, Securities Times (wwwstcncom)
U.S. stocks fell sharply again on Wednesday, and escalating tensions between Russia and Ukraine sent major stock indexes tumbling to new lows this year.
Let's take a look at the latest situation.
Ukraine from 00:00 on the 24th
A 30-day state of emergency is implemented
According to CCTV News, the Ukrainian parliament voted in favor on the 23rd to approve the implementation of a 30-day state of emergency throughout the country (except donetsk and Luhansk regions) starting at 00:00 local time on the 24th.
According to the relevant law, the period of the state of emergency is 30 to 60 days. If necessary, the President may extend the state of emergency, but not for more than 30 days. Danilov, secretary of Ukraine's National Security and Defense Council, said the decision was aimed at preventing internal instability and ensuring that the situation was brought under control. In addition, he said restrictions on the implementation of a state of emergency can vary from region to region.
It is reported that the measures that can be taken during a state of emergency include: a special entry-exit system that restricts freedom of movement; traffic control and vehicle inspection; strengthening the protection of public order and facilities to ensure the livelihood of the masses; prohibiting the holding of assemblies, demonstrations, sports, and other mass activities; imposing curfews; verifying citizens' documents when necessary, inspecting personal belongings, office space, and citizens' housing; restricting the sale of weapons and alcohol; confiscating citizens' registered firearms and ammunition; and regulating private television and radio programs.
In addition, on the 24th local time, the airport located in the Ukrainian city of Kharkiv and the city of Dnipro was temporarily closed.
According to reports, the airport in Kharkiv City was temporarily closed from 20:35 local time on the 23rd to 8:35 on the 24th, and the airport in Dnipro City was temporarily closed from 0:00 to 7:00 local time on the 24th.
At present, the reason for the temporary closure of the two airports is unknown.
Biden shot, and U.S. stocks fell
According to CCTV news, US President Biden officially announced on February 23 local time that new sanctions will be imposed on Nord Stream 2 AG, the operating company of the "Nord Stream-2" project, and its company executives.
Biden said in a statement released on the same day that the steps were preliminary sanctions taken by the United States against Russia's actions in Ukraine.
After Biden spoke, the US stock market suffered.
The S&P 500 fell 1.8 percent to close at 4,225.50, nearly 12 percent from its record closing level on Jan. 3, and the index fell further into a correction.
The Dow Jones Industrial Average fell 464.85 points to 33131.76.
The technology-focused Nasdaq Composite fell 2.57 percent to 13,037.49.
Both the Dow and nasdaq fell for the fifth consecutive trading day, while the S&P 500 fell for four consecutive days. The Dow Jones and Nasdaq closed below their intraday lows on Jan. 24 on Wednesday. The S&P 500 briefly fell below its late-January low, closing just above that level.
Crude oil, natural gas, gold are all up
The trend of natural gas and crude oil is closely related to the situation in Russia and Ukraine. Now that Biden has announced a shot at the Nord Stream-2 project, European natural gas has soared again, rising more than 10% at one point.
Affected by the intensification of tensions in Russia and Ukraine, crude oil rose well, but near the end of the session, due to the news that the United States may release oil reserves, crude oil rushed higher and fell back. Judging from the trend of the whole day, the US oil and cloth oil closed higher at the close.
Toward the end of the day, Biden's deputy national security adviser, Daleep Singh, said at the White House that the United States was consulting with oil exporters and importers to try to mitigate the potential impact of hostilities and sanctions escalation. The talks included the possibility of using the Strategic Petroleum Reserve beyond the plans announced last year.
Because the situation in Russia and Ukraine may have a greater impact on European countries, Brent crude oil has gained stronger support, and its recent rise is stronger than that of US oil. On Wednesday, Brent crude's premium to WTI crude rose to its biggest since the beginning of the outbreak, and the spread widened to nearly $5 a barrel.
In addition, gold also showed a rally due to rising safe-haven demand.
Several countries announced sanctions against Russia
According to CCTV financial reports, US President Joe Biden made a speech at the White House on the 22nd on the situation in Ukraine, announcing economic sanctions against Russia. The targets of this round of sanctions include two large state-owned financial institutions and their subsidiaries that provide funds for Russia's economic development and army building, the Russian sovereign bond market, and five individuals and their relatives associated with the Russian government.
The U.S. government will freeze the assets of sanctioned Russian financial institutions in the United States, prohibit U.S. individuals and businesses from trading with them, exclude them from the global financial system, and prevent them from acquiring dollar assets. The U.S. government will also prohibit U.S. individuals and businesses from investing in bonds offered by Russian government agencies in the secondary market.
On the same day, the EU foreign minister announced the EU's sanctions package against Russia. Including: The European Union will impose sanctions on the Russian State Duma, that is, members of the lower house of parliament, which approve the recognition of the independence of the "Donetsk People's Republic" and the "Luhansk People's Republic" in eastern Ukraine, freezing its assets and prohibiting the issuance of visas to them. The EU will also sanction 27 individuals and entities that "undermine or threaten" Ukraine's independence, sovereignty and territorial integrity. It is reported that this round of sanctions measures need to be formally approved by the EU 27 countries before they can take effect.
British Prime Minister Johnson announced in the lower house of parliament on the 22nd that in response to the situation in Ukraine, the United Kingdom sanctioned 5 Russian banks and 3 wealthy Russian businessmen, and prohibited British individuals and entities from trading with sanctioned targets.
The Canadian government also announced the first round of sanctions against Russia on the same day, including: prohibiting Canadians from buying Russian sovereign debt; and imposing sanctions on two Russian state-backed banks.
Japanese Prime Minister Fumio Kishida announced sanctions against Russia this morning, including suspending the issuance of visas and freezing their assets to relevant personnel of the "Donetsk People's Republic" and the "Luhansk People's Republic", and prohibiting the import and export transactions between Japanese individuals or entities and the above-mentioned areas.
"Dark" clouds shrouded "European granaries"
Futures prices of wheat and other agricultural products soared across the board
Russia and Ukraine are important suppliers of wheat, corn and other crops, and Ukraine is known as the "granary of Europe". Under the tension between Russia and Ukraine, the futures prices of wheat and other agricultural products soared across the board. Markets fear that world food security could be at risk if the conflict escalates.
Russia has always been one of the world's major "breadbaskets", while Ukraine is also known as the "European bread basket", and the conflict between the two sides may have an impact on the prices of commodities such as wheat, soybeans, corn, rapeseed oil and so on. Taking wheat as an example, the OEC summary data of the visual data analysis platform shows that in 2019, Russia was the world's largest wheat exporter, accounting for more than 18% of the total global exports, and the fifth-ranked Ukrainian export accounted for more than 7%, which together contributed more than a quarter of the global wheat exports.
Wheat from Russia and Ukraine is mainly exported to Egypt, Turkey, Bangladesh and some Middle Eastern countries. Among Asian countries, Indonesia, the Philippines, Thailand, South Korea and other countries also import wheat from Ukraine. Because of its geographical location, this trade is mainly carried out through the Black Sea, which is also the area where major countries exercise. In the event of a military conflict or more trade sanctions, there may also be disruptions in port trade near the Black Sea, affecting the prices of these related commodities.
In addition to wheat, Russia and Ukraine are also major barley exporters, Ukraine is one of the top five corn exporters in the world, and Russia also exports certain agricultural products such as rapeseed oil. In the era of globalization, changes in regional supply and demand relations will soon be transmitted to the world. The United States, which is involved in the conflict, may also need to bear the pressure of rising prices, although it is a major exporter of agricultural products.
Affected by geopolitical tensions, wheat futures prices traded on the Chicago Board of Trade have recently gained significant upward momentum, with the current trading price nearly 30% higher than a year ago, and the corn futures price trend is similar, with the current year-on-year increase of nearly 40%. (The editor of this article, Li Yutong, Wang Tingting, Lin Xiying, comes from 21 Caiwenhui, the IT boss has been authorized by the author, and the IT boss has been published by the EDITOR, and the views in the article are the views of the author and do not represent the views of the IT bosses.) ）