FTSE 100: Why is the FTSE 100 down today? FTSE 100 price and oil prices as Russia-Ukraine crisis sees stocks slide

The FTSE 100, the UK’s leading stock index, has plunged by 3% today (Thursday February 24) as markets shudder in response to Russia’s invasion of Ukraine this morning.

Opening at last night’s close of 7,498.18 at 8am GMT, FTSE 100 price fell in the first five minutes of trading to 7,314.51 points before dipping further to 7,288.56 by 8.15am.

The 3% dip on the FTSE represents the steepest fall over the past month, with the FTSE 100 trading at 7,297.15 points a month ago on January 24, and one that echoes market dips in Europe and the US – with the German DAX stock exchange likewise seeing a 5% fall so far in today's trading.

More than 200 points have been wiped from the UK FTSE index today, with Russian-related stocks facing the largest fall on the stock index with up to $250 million wiped off the board.

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Here’s why the FTSE 100 is down today and whether we can expect the stock market to crash as fears over the impact of Russia’s war on Ukraine take hold.

What is the FTSE Index?

The Financial Times Stock Exchange, also known as the FTSE 100, FTSE Index or ‘Footsie’, is the UK’s leading share index, representing the top 100 blue chip busines companies listed on the London Stock Exchange according to their market capitalisation.

It includes major British companies like Barclays bank, Lloyds Banking Group, Burberry, BP, BAE and AstraZeneca.

Maintained by the London Stock Exchange Group, the FTSE is typically viewed as an indicator of overall economic and market performance in the UK – with its rise or fall in shares generally representing UK market trends on the whole.

Why is FTSE down today?

The FTSE tumble comes as oil prices spike and Russian stocks fall in response to the news of Russia’s full scale invasion into Ukraine.

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Ukrainian citizens in Kharkiv and Kyiv have today awoken to the sound of explosions and shelling as Russia increased its military presence in the country, as further EU, UK and US sanctions are levied on Russia for what Prime Minister Boris Johnson has now declared a “hideous and barbaric venture of Vladimir Putin that must end in failure.”

The impact has already been felt by UK mining companies with Russian operations like Polymetal International and Evraz, while oil and gold stocks rose on the index in response to sharp increases in demand for oil and metals.

The FTSE stock index has fallen alongside many other markets around the world, with the Dow Jones Industrial Average on Wall Street in the US also down 688.11 points as of 3.10pm UK time in a 2% fall on the last 24 hours.

The Dow Jones fell on opening from 32,830.33 points to 32,320.75 by 9.35am Eastern Time in the US.

Who are the biggest losers on FTSE 100 today?

The ramifications of Russia’s stepped up invasion of Ukraine has seen multinational companies with operations in Russia take the biggest hit so far.

Anglo-Russian mining multinational Polymetal International Plc experienced the biggest fall on the FTSE on Thursday, trading down by 43% as of 2.45pm at 625 points – down a whopping 472.50 points on the last 24 hours.

Evraz plc, a British multinational mining corporation operating in Russia, has seen its shares fall on the FTSE 100 by almost 30% on the last 24 hours, trading down by more than 70 points at 172.18 as of 2.40pm.

Other companies feeling the fall out of sanctions on Russia and increasing conflict and instability in eastern Europe include Rolls Royce Holdings Plc, down more than 20 points and 17% at 97.11 points and Lloyds Banking Group – trading 11% down on yesterday’s share price at 46.41 as of 3pm.

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What is the oil price today?

Oil prices have soared by roughly 6% today as demand for oil sharply increases in response to Russia’s aggression, with petrol and gas prices rising in Europe and the UK.

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On the New York Merchantile Exchange (NYMEX), West Texas Intermediate crude oil is trading up by 5.2% at $96.90 on Thursday afternoon after Brent crude oil prices skyrocketed to more than $100 a barrel on Thursday morning.

Brent Crude is currently trading at $103, up more than 6 points and 6% on yesterday’s value as Wall Street opened 2% lower in the US.

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