The main world stock markets fell again this Monday, after the new sanctions imposed on Russia for its attack on Ukraine, amid fears that energy prices will skyrocket and reinforce current inflation.
The European markets finished in the red: Paris and Milan respectively lost 1.39%; Frankfurt, 0.73% and London, 0.42%. In Madrid, the decline was slighter, 0.09%.
Wall Street also presented negative figuress: around 5:45 p.m., the reference index, the Dow Jones, lost 1.16%, the Nasdaq; 0.59% and the S&P 500 fell 0.67%.
The Asian parquet floors were more resistant: Tokyo rose 0.19%, Shanghai 0.32%, and Hong Kong lost 0.24%.
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At the close of European markets on Friday, financial sanctions against Russia were weaker than expectedbut they tightened over the weekend “and that’s what made the market move today,” said Xavier Girard, financial investment expert at Milleis Banque.
In Moscow, “if we look at the MOEX index of the Russian stock market, it fell 27% last week, despite having rebounded 20% on Friday and the stock market remained closed todayGirard explained.
Western countries and Japan they decided to exclude many Russian banks from the Swift interbank platform.
In addition, the transactions of the Russian Central Bank were blocked by the European foreign ministers, in agreement with the G7 powers.
On Monday, the United States prohibited any transactions with the Russian monetary institution, and did so shortly before the US markets opened. The decision will severely limit Moscow’s ability to use its abundant foreign exchange reserves to buy rubles.
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And while stocks fell, commodity markets appeared strong.
“The health crisis revealed a great dependence on China, this crisis shows that we are also too dependent on Russia and as a consequence, prices increase”, observes Xavier Girard.
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In the European natural gas market, the reference contract rose 10.33%, to 99.30 euros per megawatt hour, around 5:45 p.m. GMT.
the price of wheat closed with a new record in the European marketof 322.50 euros per tonne and aluminum also broke a new record reaching 3,525 dollars per tonne.
Russia and Ukraine are essential for the supply of crucial raw materials. (I)
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Source: Eluniverso
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