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Stocks are in the red as Russia has sent troops into Ukraine. The move by Moscow has been criticised by the west and world leaders are trying to prevent an all-out war.
Traders have abandoned equities and fled to safe havens like gold. Oil and gas prices have also surged, as over two-thirds of Russian gas exported to the EU is piped through Ukraine and if tensions escalate gas supplies to the west could be cut.
British banks have been hit by concerns over exposure to Russian and Ukrainian banks; with the credit lines in eastern Europe drying up, the banking system in western Europe is feeling the pinch.
Mining companies have been significantly affected by the report that manufacturing in China did in fact drop to a seven-month low. A cooling off in home building will make matters worse for the mineral extractors. Ferexpo was caught in the crossfire, as traders dumped stocks in the Ukraine-focused iron ore producer.
In the US we are expecting the Dow Jones to open 110 points lower at 16,211 as the prospect of war in Ukraine looms.