section_path: Reactions/Reactions to the Russian annexation of Crimea/Financial markets
section_name: Financial markets
paragraph_text: Financial markets
  
  The initial reaction to the escalation of tensions in Crimea caused the Russian and European stock market to tumble. The intervention caused the Swiss franc to climb to a 2-year high against the dollar and 1-year high against the Euro. The Euro and the US dollar both rose, as did the Australian dollar. The Russian stock market declined by more than 10 percent, while the Russian ruble hit all-time lows against the US dollar and the Euro. The Russian central bank hiked interest rates and intervened in the foreign exchange markets to the tune of $12 billion to try to stabilize its currency. Prices for wheat and grain rose, with Ukraine being a major exporter of both crops.
  
  Later in March 2014, the reaction of the financial markets to the Crimea annexation was surprisingly mellow, with global financial markets rising immediately after the referendum held in Crimea, one explanation being that the sanctions were already priced in following the earlier Russian incursion. Other observers considered that the positive reaction of the global financial markets on Monday 17 March 2014, after the announcement of sanctions against Russia by the EU and the US, revealed that these sanctions were too weak to hurt Russia. In early August 2014, the German DAX was down by 6 percent for the year, and 11 percent since June, over concerns Russia, Germany's 13th biggest trade partner, would retaliate against sanctions.