‘Rapidly evolving’: CBA (ASX:CBA) boss warns of continued volatility amid Russia fears

It’s a rough day on the market for many ASX shares, including Commonwealth Bank of Australia (ASX: CBA). And there could be more pain to come if geopolitical tensions in Europe escalate, according to the bank’s boss.

At the time of writing, the CBA share price is $95.18, 1.56% lower than its previous close.

At the same time, the S&P/ASX 200 Index (ASX: XJO) has slumped 2.36% and the All Ordinaries Index (ASX: XAO) is down 2.27%.

CBA CEO and managing director, Matt Comyn reportedly told media a military conflict in Russia would likely see financial markets such as the ASX hit with volatility.

Let’s take a closer look at today’s comments from the bank’s boss.

Russian invasion could spur market volatility: Comyn

It’s a rough day for ASX 200 shares, including CBA.

Meanwhile, the bank’s boss is keeping an eye on happenings overseas, saying a Russian invasion of Ukraine could impact global markets.

Comyn made the comments, published by The Australian, at an event launching the bank’s campaign to raise awareness of financial abuse in domestic and family violence situations.

“Clearly we are watching with interest what’s happening in Russia and broader Europe,” Comyn was quoted as saying. “[W]e recognise there’s likely to be volatility around and that situation is rapidly evolving.”

He said if the conflict escalates, it will likely impact financial markets, as well as currencies and oil prices, in the near term. Though, the ASX might not be among the most affected exchanges.

“Australia is not a large trading partner so we don’t have a lot of direct exposure to that region but clearly geopolitical risk can have broader implications so it’s something we’re watching,” The publication quoted Comyn as saying.

According to live reporting by the ABC, Ukrainian President Volodymyr Zelenskyy claims Russia is gathering troops at Ukraine’s border after approving an offensive against the nation.

Zelenskyy’s comments came as United States secretary of state, Antony Blinken told NBC Nightly News he believes Russia could be involved in some form of invasion of Ukraine within the day.  

As my Foolish colleague Aaron Teboneras reports, Blue Line Futures chief market strategist Phil Streible believes commodities could boom following an invasion.

Oil prices, for one, could be significantly impacted, as Russia is a major global supplier of the black liquid.

Platinum, palladium, copper, and wheat could also see prices skyrocket on the back of an attack.

CBA share price snapshot

This year is so far has been a rough one for the CBA share price.

It’s currently 7% lower than it was at the start of 2022. Though, it’s still 14% higher than it was this time last year.

The post ‘Rapidly evolving’: CBA (ASX:CBA) boss warns of continued volatility amid Russia fears appeared first on The Motley Fool Australia.

More reading

• Own CBA (ASX: CBA) shares? Here’s how the bank is pushing its ‘green’ and ESG investment products
• Should you be buying ASX 200 bank shares in February?
• ASX 200 shares stage comeback amid Russia optimism
• The Bank of Queensland (ASX:BOQ) share price has leapt 10% in 3 weeks. How does this compare to the other big banks?
• At today’s CBA (ASX:CBA) share price, how big will the FY22 dividend yield be?

Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

from The Motley Fool Australia https://ift.tt/hYUdF6b