Most of the big European stock markets fell this Monday more than 2% due to the tension generated by the possible invasion of Ukraine by Russia and by the change in the discourse of the central banks due to high inflation, according to market data and experts consulted.
(‘Finlandization’: what it is and why it would solve the Ukraine-Russia crisis).
In the biggest drop in these places since last January 24, which occurred for reasons similar to that of this day, the Spanish stock market has presided over the European losses, with a decrease of 2.55%, while that of Paris has dropped by 2.3%; the Euro Stoxx 50 index 2.18%; Milan a 2.04; Frankfurt 2.02% and London 1.69%.
Global equity markets started the week down around 3% as The United States had said that Russia could invade Ukraine at any time, a matter denied by the Kremlin.
(Tension in Europe: Would Russia Invade Ukraine in a Matter of Days?).
In addition, Wall Street had closed on Friday with large losses: the Dow Jones Industrial Index It fell 1.43%, the S&P 500 1.9 and the technological Nasdaq 2.78%.
The negative sentiment, aroused by the proximity of a Russian attack on Ukraine and by the recommendation of many foreign governments to their citizens to leave this country, had spread throughout Asia this morning: Bombay has ceded 3%; Tokyo 2.23%; Seoul 1.57%, Hong Kong 1.41% and Shanghai 0.98%.
In addition to the pre-war scenario painted in Eastern Europe, investors remained concerned about the scope of the changes that are going to be implemented in monetary policy in the United States, after inflation rose in that country to 7.5% in January , and in Europe, which had been reflected last week in the yield on long-term debt.
However, in this session, and after the president of the San Francisco Federal Reserve, Mary Daly, said on Sunday that the rise in rates has to be supported by economic data so as not to harm activity, The interest on the German bond, which acts as a refuge in crisis situations, fell slightly, one hundredth, and stood at 0.28%.
The president of the Federal Reserve of San Luis, James Bullard, gave a contrary speech, in favor of a rapid response to contain inflation, with which the yield of the US debt took the opposite path and exceeded 2% (gained eight basis points and stood at 2.02%).
The price of oil also influenced the stock market sentiment at the beginning of the day (a barrel of Brent crude, a reference in Europe, was 1.8% more expensive at the beginning of the day and changed above 96 dollars, level unknown since the beginning of October 2014, although at the close of the stock market it was trading at 94.5 dollars, the closing price of the day before).
At the end of the session, the moderation of losses of 1% recorded by Wall Street shortly after the start of its day to 0.4% served to reduce the drop at the close of the stock market in the Old Continent.
EFE