Global stock markets fell further on Friday, particularly European indices, as the fighting in Ukraine continued and intensified.
Paris fell 4.97% to 6,061.66 points, Frankfurt by 4.41% and Milan by 6.24%, completing their worst session and their worst week since the announcement of the first confinement in March 2020. week, they lose more than 10% each. London, more resilient since the start of the year, dropped 3.48% on the day.
The New York Stock Exchange fell more modestly, the American economy being less exposed to Russia: the Dow Jones lost 0.53%, the Nasdaq dropped 1.66% and the S&P 500, 0.79%.
Another sign of weakness in Europe, the single currency lost 1.36% to 1.0915 dollars around 2:25 a.m. in Paris after falling to 1.0886 dollars, a level not seen since the first months of the Covid-19 pandemic there. two years old.
Putin worries the markets and the world
The Russian army occupied the Ukrainian nuclear power plant in Zaporozhye, the largest in Europe, on Friday, where bombings during the night raised fears of a disaster. “Putin is increasingly desperate to secure a victory in the face of numerous setbacks and there are few signs that he is inclined to back down,” said Michael Hewson of CMC Markets.
VIDEO. Russia bombs Ukraine’s largest nuclear power plant, Zelensky worries about ‘a nuclear disaster’
Faced with this stalemate in the conflict, “investors fear more and more the risks of recession and escalation”, commented Craig Erlam, analyst at Oanda. “The market anticipates that corporate profits will fall back, it now incorporates elements of recession,” confirms Alexandre Baradez, analyst at IG France.
Safe havens remained at high levels: an ounce of gold moved to 1,965 dollars (+ 1.48%). The 10-year US government bond fell to 1.73% from 1.84% Thursday at the close. The German 10-year rate, which is a reference in Europe, went back into negative territory (-0.08% against +0.02% the day before at the close).
Oil is on the rise again
After a slight one-day respite, oil prices started to rise again on Friday.
The barrel of Brent from the North Sea for delivery in May closed at 118.11 dollars, a level that it had not reached since August 2008, galvanized by the de facto cessation of Russian exports.
In New York, the barrel of West Texas Intermediate (WTI) with maturity in April, jumped 7.43% on Friday, to end at 115.68 dollars, a first since September 2008.
Fear of disruptions to exports from Russia, which provides 40% of European gas imports, pushed Europe’s market benchmark, the Dutch TTF, to a new record high of 213.895 euros per megawatt hour (MWh).
Raw materials are also on the rise
Wheat and maize also broke records on the European market, Ukraine being a central country in the supply of agricultural raw materials. Nickel, of which Russia is also a major producer, topped the $30,000 per ton mark, a first since 2008.
The companies most exposed to Russia are necessarily the most penalized. In Paris, Societe Generale fell by 10.03% and Alstom by 9.04%.
In Frankfurt, Uniper, which was involved in the construction of the Nord Stream 2 gas pipeline, sold 11.85%. Banks, including Commerzbank (-10.27%), and autos, such as Volkswagen (-6.99%), also suffered. In Milan, the falls of the operator Telecom Italia (-15.56%), the bank Unicredit (-14.59) or Intesa San Paolo (-7.30%) also weighed on the rating.
VIDEO. War in Ukraine: Germany suspends the authorization of the Nord Stream 2 gas pipeline
Between fuel prices and geopolitical concern, the titles of American airlines fell from high like United Airlines (-9.07% to 36.71 dollars) or American Airlines (-7.13% to 14.59 dollars ). In addition, bitcoin yielded some gains for the week (-6.06%) to 39,545 dollars.