Russian MOEX index records largest single-day decline since 2022 amid drone strikes and sanction risks

The US has threatened tariffs on Canada, citing cross-border wildfire smoke impact, while simultaneously imposing new tariffs on Brazilian energy equipment. Concurrently, global equity markets, particularly in Japan and the tech sector, are experiencing significant volatility and declines, driven by valuation concerns, geopolitical risks, and monetary pressures. The full economic impact of these trade actions and market corrections remains uncertain.

Global equity markets are experiencing a significant downturn, confirmed by historic declines in the Nikkei 225 and multi-year lows for the MOEX Index. This volatility is primarily driven by a broad sell-off in the technology sector, particularly semiconductors, and exacerbated by escalating geopolitical tensions involving the US, Iran, and the Russia-Ukraine conflict. The extent of systemic contagion beyond tech and specific regional markets remains uncertain.