European stocks and futures on the US fell on Tuesday, government bonds rose and oil prices rose sharply as traders weighed the global economic consequences of Russia’s invasion of Ukraine.
The Stoxx 600 stock index in Europe fell 1.7%, with all sectors in negative territory. Services stocks, consumer cycles and finances were among the biggest falls. The regional index is trading at more than 8 percent a year and has been rocking since last week when the Western powers Began to apply sanctions Against Russia.
Germany’s Xetra Dax was down 2.7%, France’s CAC 40 was down 2.9% and Britain’s FTSE 100 was down 1.1%. Shares of Russian gold maker Polymetal, which trades in London, have lost about a quarter of their value, after falling by half on Monday.
Futures markets suggest that the US S&P 500 stock index will fall 0.7%, while the Nasdaq 100 technology-focused index also tends to open lower.
Meanwhile, government bond prices have risen significantly, particularly in the eurozone, as traders sought refuge from economic risk and also gambled on the European Central Bank maintaining a supportive monetary policy.
The yield on the German Bund for 10 years, a benchmark for fundraising costs across the eurozone, fell by 0.15 percentage points to 0.01%, reflecting a significant increase in the price of the debt instrument. Italy’s parallel bond yield fell 0.2 percentage points to 1.56%.
“This is a proposal for safety and to move away from the stock market risk,” Antoine told Senna, head of research and strategy at the State Street Street SPDR ETF business. “But it also suggests that one of the main consequences of this conflict will be a gradual transition away from monetary tightening and interest rate hikes in the eurozone.”
The ECB has not raised its principal deposit rate since 2011. It has bought more than 1.6 billion euros of eurozone government bonds as part of its emergency purchase program in the plague, and was expected to do less to deal with peak inflation levels.
But the eurozone economy faces greater risks from the crisis in Ukraine than the UK and US, Said economistsBecause of deeper trade ties with Russia and great reliance on Russian oil and gas.
“Europe bears the burden of the initial impact of the invasion, with higher energy costs hurting consumers and the level of sanctions putting pressure on European growth,” ClearBridge Investments strategist Jeffrey Schulze said in a letter to clients. “Such a headwind could lead to more ions for the ECB.”
U.S. government debt also rose on Tuesday, with the 10-year yield on the Treasury bill falling 0.08 percentage points to 1.76 percent.
Meanwhile, the price of Brent crude oil, the international oil index, rose 6% to $ 103.9308 a barrel. Russia’s invasion of Ukraine has repeatedly driven oil prices Over $ 100 a barrel the month. Russian output accounts for about 10% of world oil output.
In Asia, the Japanese Topix stock index rose 0.5% and the Hong Kong Hong Kong index added 0.2%.
Another report by Andy Bounds in Brussels
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European stocks and Wall Street futures fall as traders assess economic risk Source link European stocks and Wall Street futures fall as traders assess economic risk