FTSE 100 dipped over a 7-month low on Monday, March 7, due to a huge jump in the oil prices amid the Russian-Ukraine war and bank on oil imports from Russia to countries of Western allies. It dropped 2.5 percent.
With the announcement of the United States to ban imports the price of a barrel of crude oil jumped to $130. The mid-cap FTSE 100 index fell 5.4 percent in 2022.
It is feared that the fight between the two countries may affect the global economy severely as it is followed by two years of COVID-19 pandemic, lockdown and restrictions across the world. Investors are losing confidence that the economy may recover soon. High inflation is worrying households.
The Russian started invading Ukraine on February 24 and the combat has reached the third week in a row damaging several cities and towns. Presidents of both countries may meet soon under conditions like Ukraine will drop the plan to join NATO.
Meanwhile, Russia has blocked Instagram in the country and has launched a case against the owning company Meta for allowing hate speech against Russian citizens and the Russian military on the platform. The court has been asked to designate the company as an extremist organization.
Meanwhile, Ukraine claims Russian troops have killed more than 1,500 civilians in port city Mariupol. The evacuation process is in the process to help people leave their places safely amid bombing and shelling.
US president has deployed thousands of troops in Romania, Lithuania, Estonia and Latvia, which borders Russia, to support Ukraine in the war.
What is NATO
NATO is a treaty involving two countries from North America and 28 from Europe to defend each other during attacks from external countries or parties. It was established after World War II amid threat from the Soviet Union during the Cold War period. It has continued existence even after the Cold War ended. It is headquartered in Brussels, Belgium.
Russia believes Ukraine joining NATO will be a threat to the country and hence has invaded Ukraine to bring the Ukrainian president to the negotiation table.
What is FTSE
It is an index covering 100 top companies which are listed on the LSE with respect to market capitalization. It was established in 1984 and since then has been a performance benchmark for many traders and investors. Its total market cap is about 1.8 trillion pounds.
The companies listed in the FTSE 100 include Airtel Africa, AstraZeneca, Aviva, Barclays, BT Group, Coca-Cola HBC, HSBC, Imperial Brands, JD Sports, Kingfisher, NatWest Group, Rolls-Royce, Smiths Group, Tesco and Vodafone Group.