The main world stock markets fell again this Monday after the new sanctions imposed on Russia for its attack on Ukraine, amid fears that energy prices will skyrocket and reinforce current inflation.
The New York Stock Exchange, which opened lower, ended mixed, weighing the impact of severe financial sanctions from the West.
The Dow Jones index ended in the red losing 0.49% to 33,892.60 points. The Nasdaq managed to close 0.41% higher at 13,751.40 units, while the S&P 500 lost 0.24% to 4,373.94 points, recovering during the session.
The European markets for their part ended in the red: Paris and Milan lost 1.39% respectively; Frankfurt, 0.73% and London, 0.42%. In Madrid, the decline was slighter, 0.09%.
Asian stocks were more resilient: Tokyo rose 0.19%, Shanghai 0.32%, and Hong Kong lost 0.24%.
At the close of the European markets on Friday, the financial sanctions against Russia were less strong than expected, but they tightened over the weekend and on Monday “and that is what made the market move today”, stressed Xavier Girard , financial investment expert at Milleis Banque.
In Moscow, “the MOEX index of the Russian Stock Exchange fell 27% last week, despite having rebounded 20% on Friday and the Stock Exchange remained closed today” Monday, explained Girard.
Western countries and Japan decided to exclude many Russian banks from the Swift interbank platform.
The United States banned all transactions with the Russian Central Bank on Monday with immediate effect in coordination with several allies, a decision supported by Canada, a country that also banned all imports of Russian crude.
The decision will severely limit Moscow’s ability to use its abundant foreign exchange reserves to buy rubles and sustain its coinin sharp decline.
The transactions of the Russian Central Bank were also blocked by the European foreign ministers, in agreement with the G7 powers.
raw materials on the rise
And while stocks fell, commodity markets appeared strong. “The health crisis revealed a great dependence on China, this crisis shows that we are also too dependent on Russia and as a consequence, prices increase”, observes Xavier Girard.
Oil prices thus rose on Monday, fueled by the conflict. The price of a barrel of Brent from the North Sea for delivery in April finished in a strong rise of 3.12% to 100.99 dollars. During the session it reached 105.07 dollars.
In New York, meanwhile, a barrel of West Texas Intermediate (WTI) for April delivery gained 4.50% to settle at 95.72 dollars.
The price of wheat closed with a new record in the European market, of 322.50 euros per tonne, and aluminum also broke a new record, reaching 3.525 dollars per tonne.
Russia and Ukraine are essential for the supply of crucial raw materials.
Banks
According to the EU, about 70% of the Russian banking sector is currently excluded from the Swift system. The European Central Bank has declared the European branch of Russian bank Sberbank “bankrupt or in danger of bankruptcy” due to “significant” withdrawals of funds.
In reaction, in Paris, Société Générale lost 9.89%, BNP Paribas 7.47% and Credit Agricole 4.96%. In Frankfurt, Commerzbank fell 7.33% and Deutsche Bank 5.20%. In Milan, Unicredit was not spared either and fell 9.48%.
AFP