Euro markets fluctuate – Stoxx 600 ‘pick up’ profits

LAST UPDATE: 13.00

Operation recovery in the euro markets, since after the negative signs in the initial transactions, the indices strengthened more than 1% before collecting their profits below 0.5%.

Investors weigh the reports for one “giant” issuance of joint debt of the “27” of the EU in order to finance the energy and defense independence of the blocafter the fears created by the Russian invasion of Ukraine all over the continent.

According to a Bloomberg report, the European Union will unveil the proposal to the leaders of the 27 member states meeting in Versailles, France, on March 10 and 11. Officials are still working on the final details of the issue, as well as determining the amount that is expected to be raised.

The completely unexpected move until a few weeks ago comes just one year after the institutionalization of a package totaling 1.8 trillion. on the basis of common debt, for the recovery of the European economy from the coronavirus pandemic.

At the same time, investors are turning their attention to the prospect of the West cutting off Russian oil imports, which has fueled concerns about inflation and a slowdown in economic growth.

Oil is moving higher today The United States is one step closer to imposing a ban on Russian oil imports after the invasion of Ukraine, intensifying economic pressure on President Putin.

Such a move could create a risk of stagnant inflation – a period of slow economic growth and high unemployment combined with high inflation – for the world economy.

WTI for April delivery rose 2% to $ 121.78 a barrel, while Brent for May delivery rose 2.8% to $ 126.65 a barrel.

The effects of the war have turned markets upside down, driving everything from wheat to nickel and gas to soaring as citizens prepare for an inflation shock.

In the last 24 hours, the International Atomic Energy Agency (IAEA) said it had been informed by Ukrainian authorities that Russian artillery shells had damaged a nuclear research facility in Ukraine’s second largest besieged city, Kharkiv, with no “radiological consequences.” According to the same sources, part of the Kharkiv Institute of Physics and Technology, which produces radiological material for medical and industrial use, was affected.

The third round of talks between the Russian and Ukrainian delegations took place yesterday, with Kyiv saying that some progress had been made on the evacuation of civilians from the war zones, but that there was no agreement that would improve the wider situation. . From today at 9 p.m. A ceasefire has been implemented in five Ukrainian cities to allow the evacuation of civilians via humanitarian corridors, Moscow said.

In this climate, the pan-European index Stoxx 600 adds 0.3% to 418 points, with the banking sector leading the profit with an increase of 2%, while the biggest losses are recorded by the shares of SMEs with a decrease of 1.9%.

In the individual dashboard, the German DAX strengthened by 0.8% to 12,930 points, the French CAC 40 gains 1.43% to 6,070 points, while the British FTSE 100 loses 0.12% to 6,950 points.

In the periphery, the Italian FTSE MIB climbs 2.3% to 22,680 points, and c IBEX 35 records gains of 2.5% at 7,840 points.

In the individual sharesoffice rental company IWG is rallying more than 11% after announcing lower annual losses, as many tenants returned to offices after closing due to the pandemic.

At the “bottom” of the European blue chip index, the British bakery chain Greggs is losing 6% after warning that cost pressures are likely to burden its profits for 2022.

In macro of the day, Economic growth in the euro area strengthened mainly from investments and increased inventories in the last quarter of 2021, according to Eurostat data, as household consumption declined due to the pandemic.

The European Union’s statistical office has confirmed its initial estimates that eurozone GDP grew by 0.3% on a quarterly basis and 4.6% on an annual basis. Investments added 0.7% to quarterly growth, inventories a further 0.3% and government spending 0.1%.

Furthermore, German industrial production increased in January, exceeding estimates despite problems in the supply chain. Total industrial production increased by 2.7% in January compared to the previous month, in calendar adjusted terms, according to the statistical service Destatis.

Meanwhile, stock markets in the Asia-Pacific region are decliningamid continuing investor caution in weighing developments in the Russia-Ukraine war.