Global stock markets plunge amid economic risks from the war in Ukraine

Paris fell 3.46% to the worst week since March 2020, the lowest in almost a year. Frankfurt sank 3.34% and returned to December 2020 levels around 3:00 pm Greenwich Mean Time. Resilience London has fallen 2.40% since the beginning of the year.

Milan fell 4.83% after reaching -5%, but was squeezed by the fall of several big names, including oil company Eni (-5.4%) and bank Intesa San Paolo (-7%). I did.

Another sign of Europe’s weakness, the single currency fell below the iconic threshold of $ 1.10 at 1 euro. This is a level that hasn’t been seen since the first few months of the Covid-19 pandemic. The euro fell 1.44% to $ 1.0908.

The New York Stock Exchange also fell sharply, with the Dow Jones down 1.26%, the Nasdaq down 1.28%, and the S & P 500 down 1.29%.

Asian stock markets have also suffered significant losses before.

Russian troops occupied the Ukrainian nuclear power plant in Europe’s largest Zaporizhia (south) on Friday. There, night bombings caused fear of disaster.

Russian tank fires against the plant ignited a building dedicated to training and laboratories, but no radioactive leaks were found, Ukrainian officials said. NATO has accused “irresponsible attacks”.

“Investors are increasingly concerned about the risks of recession and escalation,” said Oanda analyst Craig Ahram.

The safest investment used by market players as a shelter remained at a high level, with an ounce of gold rising to $ 1,953 (+ 0.88%).

10-year Treasuries fell to 1.727% from Thursday’s closing price of 1.84%. Germany’s 10-year rate, the European standard, has returned to the negative territory (-0.08% compared to the previous day’s closing price of + 0.02%).

Investors paid little attention to the latest figures from the US job market, which came out higher than analysts expected. The unemployment rate fell from 4% last month to 3.8%.

Oanda analyst Craig Ahram said the US central bank should be “quite happy” after the report confirming its policy of aggressively raising interest rates.

A new surge in raw materials

After a brief day’s rest, oil prices soared again, but remained below the previous day’s peak.

The WTI barrel, which matured in April, rose 5.28% to $ 113.38 around 2:55 pm GMT. This is after reaching the highest since 2008 on Thursday.

Brent barrels delivered from the North Sea in May have risen from 4.45% to $ 115.40 since they were close to $ 120 the day before.

European natural gas surpassed € 200 per megawatt hour for the first time and surged to € 208 per megawatt hour at around 2:45 GMT, rising nearly 30%.

Wheat (+ 7.92% to € 412 per ton) and corn (+ 6.33% to € 403 per ton) also set new records in the European market. Ukraine is the supply center for agricultural raw materials.

Nickel has exceeded $ 30,000 per ton for the first time since 2008.

Exposure to Russia still brings disadvantages

Among the main losers of the day are the companies most exposed to Russia, banks and cars. In Paris, Societe Generale decreased by 8.58% and Renault decreased by 4.42%.

Michelin, which stopped production at several factories in Europe due to the “logistics” problem caused by the war, brought 7.16%.

In Frankfurt, Uniper involved in the construction of the Nord Stream 2 gas pipeline decreased by 11.39%. Banks, including Deutsche Bank (-7.12%), and cars such as Volkswagen (-5.96%) were also damaged.

In Milan, Telecom Italia lost 15.87% after showing poor performance in 2021 and pessimistic outlook for 2022 on Thursday. UniCredit Bank’s 11.51% decline also weighed on Milan’s rating.

In addition, Bitcoin brought some profit (-3.39%) to $ 40,680 that week.