Ukraine crisis worries investors – stock exchanges react sharply to reports of possible Russian attacks

– Stock markets react sharply to reports of a possible Russian attack

The SMI fell well below the 12,000 point mark at times. The European stock markets are hit even harder.

Turbulent days on the markets: traders at the German Stock Exchange in Frankfurt.

Photo: Keystone (archive)

On the Swiss stock market, nervousness is spreading around the world because of an imminent escalation in the Ukraine conflict. The leading index SMI started the new week very weakly on Monday. After two days of losses in a row, the downward movement is accelerating. The local stock exchange is in line with most other European stock markets. Risky investments are avoided, relatively safe values ​​such as gold or the Swiss franc tend to be sought after.

“The Ukraine conflict has taken over the dictates of the markets,” Credit Suisse summarizes the current mood in a comment. The United States had recently issued urgent warnings, which US President Joe Biden’s security adviser, Jake Sullivan, reiterated on Sunday. He again warned that an invasion of Ukraine could begin at any time. Fears of inflation and interest rates also remain in focus.

By the close of trading at 5:30 p.m., the SMI had lost almost 1.7 percent and closed at just over 12,000 points. The daily low was 11,924 points. This means that the low for the year from the end of January at 11,868 is back in sight. The leading German index Dax and the French CAC fared even worse, each with a minus of more than 2 percent.

Among the blue chips, CS, AMS Osram and UBS recorded larger losses. The shares of the big banks are particularly badly affected by rising economic and political uncertainties.

Clariant fall into the abyss

At the start of the week, however, the focus is on Clariant with a whopping minus of 16 percent. The chemical company has postponed the publication of its figures for 2021, which was planned for Wednesday, due to internal information about possible incorrect postings of provisions and value adjustments.

The business transactions of the years 2021 and 2020 are affected. The indications of irregularities are described in stock exchange circles as “rather unsightly” if the allegations by whistleblowers are confirmed.

Oil prices are approaching the $100 mark

Oil prices continue to soar. On Monday morning, the two most important types of oil again marked multi-year highs. A barrel of North Sea Brent cost over 96 US dollars, a barrel of US West Texas Intermediate had to be paid up to almost 95 dollars. These are the highest prices since autumn 2014.

Tensions between the West and Russia over Ukraine have caused the Moscow Stock Exchange to slide. On Monday morning, the important stock index RTS of the largest listed companies fell by more than five percent. Since the beginning of the year, the index has lost more than twelve percent.

The Russian currency, the ruble, also fell sharply. At the beginning of trading, more than 88 rubles were needed for one euro, later the rate stabilized somewhat and stood at 86.5 rubles. The ruble also stabilized against the dollar during the morning and stood at 76.5 rubles. Here, at the end of January, the exchange rate fell below the symbolic mark of 80 rubles per dollar. The Russian central bank had intervened with foreign exchange purchases.

Courses and currency fell, although the price of oil has been rising for weeks. Russia is one of the most important oil-producing countries in the world and accordingly benefits from rising oil prices. (afp)

SDA/cpm

Published today at 09:55 am

Found a mistake?Report now.

4 comments