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Markets panic over the risk of conflict in Ukraine

2022-02-14T10:24:58.620Z


European stock markets opened sharply lower, weighed down by fears of an imminent Russian invasion of Ukraine that have already rocked Wall Street and Asian stock markets.


The Paris Stock Exchange fell more than 3% on Monday shortly after the opening, weighed down by tensions between Russia and Ukraine.

Fears of an imminent invasion of Ukraine by Russia which have already rocked Wall Street on Friday and Asian stock markets on Monday.

The Dow Jones lost 1.43% on Friday, the Nasdaq 2.78% and the broader S&P 500 index, 1.90%.

On Monday, the Tokyo Stock Exchange ended down 2.23%.

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Tensions are at their height, with 130,000 Russian soldiers massed on the Ukrainian border conducting all-out maneuvers.

German Chancellor Olaf Scholz is expected in Kiev on Monday to continue diplomatic efforts to defuse the threat of a Russian invasion of Ukraine.

Geopolitical tensions are pushing bond yields up, and putting downward pressure on equities.

They also ignited oil prices, at their highest in seven years, particularly sensitive to a statement by US Secretary of State Anthony Blinken saying on Friday that Russia could "

at any time

" invade Ukraine.

US President Joe Biden spoke to his Russian counterpart Vladimir Putin on Saturday and warned him that an invasion of Ukraine would lead to severe and swift economic sanctions from the United States.

Inflation soars in the United States

The markets are also concerned about the trend in inflation, which raises fears of a stronger-than-expected tightening of central banks' monetary policies.

Inflation in the United States soared to 7.5% year on year in January, the highest since February 1982. The prospect of a closed meeting of the Fed's monetary policy committee (FOMC) this Monday fueled speculation of an emergency rate hike - outside of the schedule of scheduled FOMC meetings - even though the event seems a regular occurrence.

On the macroeconomic side, investors will keep an eye on the intervention of the President of the European Central Bank Christine Lagarde on Monday, "

as well as the four members of the ECB who should intervene during the week, but also the economic bulletin of the institution European Union released on Thursday

,” said Vincent Boy, analyst at IG France.

The Fed's monetary policy report will be published on Wednesday evening in the United States.

(With AFP, Reuters)

Source: lefigaro

All news articles on 2022-02-14

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