November 27, 2022

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Stock markets await bloody day, European stocks lose more than 3 percent

Stock markets await bloody day, European stocks lose more than 3 percent

Asian stock markets lost 2 to 3 percent due to the Russian invasion. Oil will become 5% more expensive. also Call 20 It opened with a loss of more than 3 percent.

For a long time, investors seemed to underestimate the risks of a Russian invasion, but now they are facing the facts. Russia is already attacking Ukraine. So European stock markets will start to turn dark red. The Euro Stoxx50 index, which includes the 50 largest companies in the euro zone, fell 4 percent. also Frankfurt And the Paris by more than 3 percent. The Call 20 I managed to limit the damage at the moment with a loss of 2.4 percent. Chip producer Melexis was the biggest loser, down 4.5 percent. Ageas and ArgenX are also strong losers.

Follow the latest updates on the war in Ukraine in our live blog

On the other hand, oil rose significantly and broke the $100 barrier. A barrel of Brent is now 6% higher and costs $102.6. It’s been 2014 since oil has cost over $100. Russia is the second largest oil exporter in the world after Saudi Arabia. The price of gas is also through the roof and rises by 25 percent to 110.6 euros. Admittedly, this is lower than the level of December last year. The prices of gold, dollars and grains are also rising. Gold and the dollar have long been seen as safe havens during major geopolitical catastrophes. Russia is the world’s largest grain exporter. Ukraine number five.

The war comes at a bad time for the global economy. It is just recovering from the Covid pandemic and trying to control inflation. The war will fuel commodity inflation, while economic growth may decline. As a result, the probability of the 1970s scenario – high inflation with low growth, or so-called stagflation – increases sharply.

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