Global shares tumble after Russian attack on Ukraine nuclear plant – business live | Business

European shares are sliding deeper into the red, after Russian shelling at a Ukrainian nuclear plant – Europe’s biggest nuclear power station – led to a fire that burned for several hours, before being extinguished. The reactors are fine, according to the Ukrainian authorities, but this illustrates the dangers to a nuclear plant in a military conflict and has caused deep unease at the International Atomic Energy Agency. Putin’s forces have seized the power station.

• UK’s FTSE 100 down 109 points, or 1.5%, at 7,129
• Germany’s Dax down 273 points or 2%, at 13,423
• France’s CAC down 125 points, or 2%, at 6,249
• Italy’s FTSE MiB down 606 points, or 2.5%, at 23,357

The Moscow stock exchange has been shut all week. The Russian rouble has weakened 2.35% to 108.70 per dollar, after hitting 116p per dollar, near a record low.

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On the commodities markets, Brent crude is trading at $110.84 a barrel, up 0.3%, while US light crude is at $108.44 a barrel. Oil prices are set for their strongest weekly gain since mid-2020.

British wholesale natural gas for next-day delivery is nearly 3% higher at 395p per therm, after approaching December’s record high of above 450p earlier this week. The Dutch futures contract has hit record highs in recent days above €185 per megawatt hour and is currently nearly 4% higher at €167.

Commodity markets are on track for their biggest weekly gains in years after the shuttering of Ukrainian ports, fighting in several major cities and widening sanctions against Russia led buyers of oil and gas, crops and metals to look for alternatives.

Russia and Ukraine together account for just under 30% of global wheat supplies, and Russia is a major exporter of oil, gas, aluminium, nickel and other metals.

The Chicago Board of Trade’s most-active wheat futures contract has climbed 40% this week, the biggest weekly gain on record, while corn is 16% ahead and soybeans have added 5%.

Analysts at ED&F Man Capital Markets said:

We are seeing the commodity ‘melt-up continue with no sign of a let-up.

This is obviously grim news for people around the world, who are likely to have to pay more for their household energy and food in coming months. Higher oil and prices will translate into higher transport and production costs, pushing up all goods prices.