CNBC reports that Russian forces attacked Europe’s largest nuclear power plant in Ukraine early Friday morning. The attack caused global stocks to fall but triggered another rally for commodity prices. Reuters report that gold is now eyeing its best weekly gain since May 2021. Russia’s invasion of Ukraine already saw commodities hit multi-year highs, with the price of oil surging past $100 a barrel. Fed Chairman Jerome Powell said this could impact inflation expectations and growth. “What we know so far is that commodity prices have moved up significantly, energy prices in particular. That is going to work its way through the U.S. economy. We’re going to see upward pressure on inflation, at least for a while. We don’t know how long that will be sustained for,” Powell explained.
Business Insider/Hamza Fareed Malik
Stocks in Europe plunge and US futures fall after Russian forces seize Ukraine’s biggest nuclear plant, while commodities soar
Global stocks fell sharply on Friday, after Russian forces captured Ukraine’s largest nuclear power plant, battering European shares and fueling another rally in commodity prices.
As Russia’s invasion of Ukraine entered its ninth day, the country’s army seized the Zaporizhzhya plant, the biggest in Europe.
The European Stoxx 600 fell 2.6%, heading for its biggest weekly loss since March 2020, while London’s FTSE and the German DAX plunged 3.1% and the French CAC 40 lost 3.2%.
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Reuters via CNBC
Gold gains after Russia attacks Europe’s largest nuclear plant
Gold rose on Friday, eyeing its best weekly gain since May 2021, as investors scrambled for safe-haven assets after Russia attacked a nuclear power plant in Ukraine — the largest of its kind in Europe.
Spot gold rose 0.6% to $1,946.41 per ounce by 0100 GMT and was on track for a weekly gain of about 3%. U.S. gold futures also rose 0.6% to $1,948.60.
The Zaporizhzhia nuclear power plant in Ukraine was on fire early on Friday after an attack by Russian troops, the mayor of the nearby town of Energodar said.
Russia has already captured the defunct Chernobyl plant, some 100 kilometres (62 miles) north of Ukraine’s capital, Kyiv.
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Kitco News/Anna Golubova
‘Everything is so uncertain’: Fed is worried Ukraine war could push inflation higher, slow growth, says Powell
With U.S. inflation running at 40-year highs, the Federal Reserve’s priority is to avoid “entrenched” and “self-perpetuating” inflation. But Russia’s invasion of Ukraine and the new sanctions could have “unintended consequences,” Chair Jerome Powell testified on Thursday.
This is something the Fed is watching very carefully, Powell told the Senate Banking Committee. “Everything is so uncertain. We don’t want to add to the uncertainty. At times like these, we move carefully,” he said.
Powell confirmed that he plans to support a traditional 25-basis-point hike at the upcoming March 15-16 FOMC meeting. Fed officials will also iron out a plan to reduce the central bank’s nearly $9 trillion balance sheet.
Read the full story, here.