Stock markets around the world have taken a hammering as global event’s and regional tensions spark a sell off by traders with an anonymous trader speaking to CNBC saying “We don’t have panic selling here, We’re getting a lot of panic questions.”
Since it’s open this morning, the Dow Jones Industrial Average has fallen over 200 points as worries over the escalating crisis in Ukraine and faltering growth numbers released by China spooked investors.
The Dow opened at 16,405 and almost immediately began to slide. By noon it had fallen by more than 130 points and continued on a downward trend all afternoon loosing 310 points before rallying slightly to a loss of only 231. In Germany, the DAX exchange fell by more than 170 points (nearly 2% of it’s total value)
Russia’s invasion of Crimea, the massing of Russian forces on the boarder of Ukraine, and the performing of military exercises ahead of the Russian backed referendum in Crimea has contributed to the unease.
Ian Lyngen, senior Treasury strategist at CRT Capital told CNBC, “There are headlines about Russia from Kerry and the Ukraine president and just the general sense that things are going to get worse before they improve.”
Secretary of State John Kerry has said that “serious series of steps” will be put in place by both Europe and the US if the referendum happens. In his briefing at the White House today, White House Press Secretary Jay Carney reiterated the Obama administration and G7 nations’ position that the results of the referendum, were it to be held, would not be recognized.
German Foreign Minister Frank-Walter Steinmeier has been quoted by Reuters saying that “all attempts to de-escalate the situation in Crimea, Ukraine, have been rejected by Russia,” while France’s Ambassador to the United Nations Gerard Araud dismissed Russia’s actions saying “I don’t play chess well, but I see Russia as a rookie player who can’t resist taking the tower and loses the game.”