More Downward Pressure Expected
The stock markets, especially in Europe, suffered substantial losses last week. For example, the EuroStoxx 50 lost almost 5% on Friday alone and almost 10% on a weekly basis. The FTSE 100 fell 6.71% last week to 6,987.14 and France’s CAC 40 was down 8.97% to 6,061.66, while Germany’s DAX index lost 10.11% to 13,094.54.
Markets in Europe have thus gone into crisis mode as the fighting in Ukraine enters its second week. They also came under further pressure after the attack on the nuclear power plant in Zaporizhzhya.
The West now wants to tighten sanctions further and ban raw material imports from Russia altogether. This will inevitably have an impact on consumer prices in Western countries.
In addition, an EU summit in Versailles is on the agenda this week. The meeting’s agenda also includes the situation in Ukraine and the consequences of the sanctions in the EU. In this context, an aid fund for the member states is to be set up, into which money from the reconstruction funds from the Corona crisis is to flow in the short term. This is intended to cushion the economic consequences and share the burden on the shoulders of the EU members.
In addition, the ECB will announce the interest rate decision for March on Thursday. Despite rising inflation in the eurozone, a stricter interest rate policy is not expected. Intercept funds for the Russian sanctions are now probably needed.
U.S. stock markets also lost further ground last week, despite continued strong economic data.
The DOW has lost 1.30% to 33,614.80 points.
The S&P 500 lost 1.27% to 4,328.87 points.
The NASDAQ lost 2.78% to 13,313.44.
The major Asian stock markets all started the week in the deep-red territory. Due to the war in Ukraine, Asia is also expected to rise primarily commodity and consumer prices.
The NIKKEI 225 (Tokyo) started with 3.15% in the red and stands at 25,166.23.
HANG SENG (Hong Kong) is down 3.26% at 21,187.96.
SHANGHAI is down 1.22% at 3,405.52.
The S&P/ASX 200 (Sydney) is down 1.09% at 7,033.50.
KOSPI (Seoul) is down 2.54% at 2,644.45.
SET (Thailand) has yet to move and stands at 1,671.72.