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Price fall in the Dax:
Investors take money off the table before the meeting of the US central bankers - the market is expecting the first of at least three interest rate increases this week
Photo: Niklas Rüge / dpa
Dax, Dow and Eurostoxx crash: The indices in Europe and the USA got under the wheels on Monday because of the Ukraine crisis and the prospect of rising interest rates in the USA. Stocks from the travel and tourism sector, technology stocks and the cryptocurrency Bitcoin flew out of the depots, while safe havens such as Bunds and gold were in demand. In the face of massive tensions, the US State Department has meanwhile ordered the families of diplomats to leave the US embassy in Kiev. The British Embassy also reduced its staff. With a minus of 4 percent (621 points), the Dax dipped below the 15,000 point mark at times. The cryptocurrency Bitcoin has lost more than 50 percent in value since the beginning of November.
The EuroStoxx50 slipped by 3.7 percent to 4074 points. The stock indices were thus heading for their biggest daily losses since the end of November, when the omicron variant of the corona virus unsettled the stock markets. The MDax collapsed by more than 4 percent.
Wall Street also opened with losses and continued to extend the minus as trading progressed. The US technology exchange Nasdaq fell 2.7 percent, the market-wide S&P 500 slipped 2.3 percent, the
Dow Jones
was listed almost 2 percent lighter. "The risk mix of geopolitical tensions, a rising oil price and the prospect of continued high inflation rates and higher interest rates means that investors are currently avoiding stocks," said analyst Jochen Stanzl from the online broker CMC Markets. The volatility indices VDax and VStoxx, which measure investors' nervousness, rose by up to 21 percent.
Market traders were expecting the US Federal Reserve to announce a rate hike for March on Wednesday, said investment strategist Jürgen Molnar from the brokerage house RoboMarkets.
“The market is just puzzling over how high this rate hike will be and how many will follow it over the course of the year.”
It is also unclear how quickly the Fed will reduce its securities holdings.
Russian stock exchange with biggest slide since 2020
Investors fled Russian equities fearing Western sanctions in response to tensions with neighboring Ukraine.
Moscow's leading index fell by more than 8 percent - the biggest slide since the Corona-related stock market crash in March 2020. The Russian currency also came under pressure.
In return, the dollar was quoted at 78.64 rubles, the highest it was more than a year ago.
Despite diplomatic efforts, tensions between Russia and the West continue to escalate.
On Monday, Russia accused the government in Kiev of provoking a military conflict.
The danger of war has never been so great, said Kremlin spokesman Dmitry Peskov in Moscow.
Market traders are expecting the US Federal Reserve to announce a rate hike for March on Wednesday, said investment strategist Jürgen Molnar from the brokerage house RoboMarkets.
“The market is just puzzling over how high this rate hike will be and how many will follow it over the course of the year.”
It is also unclear how quickly the Fed will reduce its securities holdings.
Bitcoin halved market value
Cryptocurrencies also flew out of the depots.
Bitcoin and Ethereum slipped by up to 15 percent and were quoted at 33,584 and 2220 dollars at the level of half a year ago.
Bitcoin has lost more than half of its market value since hitting a record high of $68,000 on Nov. 9.
The "anti-crisis currency"
gold
rose in price by 0.5 percent to $1,843 per troy ounce (31.1 grams).
Bunds were also in demand, with yields on 10-year stocks falling to minus 0.102 percent.
Japan's stock market down, China up
The Tokyo stock exchange was initially weaker on Monday.
Technology stocks followed last week's US guidance into the red.
In general, the market was cautious ahead of the eagerly awaited meeting of the US Federal Reserve.
The Nikkei index, which comprises 225 values, was 0.3 percent lower at 27,447 points.
The broader Topix index fell 0.2 percent to 1,923 points.
The Shanghai stock exchange, on the other hand, was up 0.2 percent.
The index of major companies in Shanghai and Shenzhen gained 0.4 percent.
Oil prices rise slightly
Oil prices started the new week on Monday with moderate premiums.
In the morning, a barrel (159 liters) of North Sea Brent cost $88.49.
That was 60 cents more than on Friday.
The price of a barrel of the US West Texas Intermediate (WTI) variety rose by 57 cents to $85.71.
Oil prices have risen sharply since the beginning of the year and hit seven-year highs last week.
The main reasons for the development are a relatively tight supply and solid demand.
The current corona wave does not appear to be affecting the economy as much as previous waves.
One reason is the omicron variant, which is more contagious but usually less drastic in terms of symptoms.
With news agencies