The global economy is 'staring into the abyss' as Ukraine invasion hits the Australian stock market

The Australian share market suffered its worst trading session in almost 18 months as Russia commenced its attack on Ukraine.

The ASX 200 plummeted by 3 per cent to 6,991 points (its biggest single-day fall since September 4, 2020), wiping roughly $74 billion off the value of the market.

At its lowest point today, the benchmark index had dropped by as much as 3.4 per cent.

Some of the share market's biggest names like BHP (-6.9pc) and ANZ Bank (-3.4pc) came under intense selling pressure.

But higher risk companies, especially in the broadly defined tech and biotech sectors, saw the most spectacular falls.

Speculative tech companies with earnings reports that disappointed the market copped a particular hiding on a day when investors were seeking safety for their cash.

Life360 and Appen were hit hardest among the top 200 stocks, both falling almost 29 per cent after earnings reports that missed expectations.

The Australian dollar — often seen as a barometer to the "mood" on global markets — has fallen to 71.9 US cents (down 0.6 per cent) as the "safe haven" US dollar and Japanese yen both rallied.

Gold, seen as the ultimate safe haven for investors, jumped to a two-year high (up 1.7 per cent to $US1,940 an ounce).

Source: It's a conflict on the other side of the world, but the Ukraine invasion has already hit the Australian stock market

Not surprising. Bargains to be had or only the beginnings of a sustained bear market over time?

 

This will blow over and be page 2 news soon enough. Not downplaying the devastation of war but from the perspective of the australian economy and share market, it’s a non event.
Interest rates and inflation are a bigger concern. Even then I think the market seems to panic more about news of rate rises and inflation then when rates actually go up due to inflation.

 

The market was lower than now, last month, when the fed was talking about rate rises.

 

As I write this (2230/1130UK), UK FTSE 100 is up 2% after a bad day Thursday. I guess this reflects the news not being so bad after all (if only)

 

I think ASX was up about 2%. Agree with above. But one day doesn’t make it a trend!

 

The ASX200 finished up .10% . The allords finished up .28%

 

That’s correct. I was looking at 200 ( cause that’s what my ETFs are tracking) and it was up over 1.7%

 

SPI 200 is the futures index. Your 200 tracking ETF would be tracking ASX 200 (AXJO). It went up 0.10% on Friday

 

Is it? Will take your word for it. All I know my portfolio went up just over 2%

 

Worldwide most markets are up overnight just by looking at the Russell 2000 and the Dow Jones so there is still a potential just like covid when it started as this is unpredictable that it goes the same way ,opposite to what the investment social media experts think..

 

Massive UP day here in Europe. FTSE and DAX up over 3.5%.
Busy writing puts yesterday and calls today as volatility pushes up the premiums.

 

Dow up 800 points. Ukraine war could be over soon.

 

There is always a upside to everything as the investment ripples rapidly spread..

 

Until WW3 breaks out..

 

Yes WW3 would be bad for the stock market.

If WW3 breaks out, I imagine a market correct will be the least of our worries.

Let’s be real though. No western power is going in a WW for Ukraine. In the Middle East no one gave a rats when America went in and invaded multiple countries. Because this is in Europe, it has captured the western medias attention.
Americas interest in this is keeping Russia and China in check. Not saving Ukraine.

 

Can't compare this to the middle eastern wars. There's nuclear power involved.

 

Why can’t you compare it. One nuclear country vs a non nuclear country. Just like the Middle East war.

Are we suggesting that there is the possibility of a nuclear World war over Ukraine?
Again nothing is impossible but if that was to happen the stock market would be the least of anyones worries.

The current market volatility is around oil prices going through the roof. If that can be contained or comes back to earth then the war in its current state will not have a massive impact on the australian economy / stock market.

That’s how I see it anyway. I am by no means an authority on this topic, just personal opinion.

 

Agree. No one is gonna start WW3 over Ukraine. Putin knew this from the start so he knew he'd get away with a full invasion. Mention the N word a few times in the campaign to make the world think you're unhinged.

It's tragic for Ukraine but like I said in another post, it was over before it began.

What remains to be seen is what happens after Putin takes Kiev etc.

My 0.00012c

 

Or 1 ruble.

 

Didn't want to mention ruble and risk sanctions from Simon.