Negative turn in the European markets with a view to geopolitics

LAST UPDATE 13:12

The majority of European indices have now passed into negative territory, as the Kremlin’s clarification that “there is nothing definite” in time for the Biden-Putin meeting, moderated the initial optimism that the news had brought.

In this climate, the pan-European Stoxx 600 index, which at the beginning of trading strengthened by up to 0.6%, is now moving with losses of 0.4% to 459 points, with a greater source of pressure on the technology sector.

On the European charts, the German DAX is now also down 0.4% to 14,982 points, the French CAC 40 is down 0.8% to 6,875 points, as is the British FTSE 100 which is losing 0.1% and is trading. at 7,510 units.

Similarly, in the European region, the Italian FTSE MIB is down 0.4% and is trading at 26,337 points, as is the Spanish IBEX, which has gone from 0.8% gains to corresponding losses, now moving to 8,565 points.

With geopolitical tensions on Ukraine’s border effectively monopolizing the interest of the international investment community in recent times, the news that Russian Presidents Vladimir Putin and US President Joe Biden have agreed to meet to discuss the issue, following a proposal by the French president Εμ. Macron downplayed concerns about an impending Russian-Ukrainian war, offering temporary “relief” to European indicators.

However, the Kremlin was quick to point out that there were no “concrete plans” for a summit, but that it could be set at any time, restoring nervousness in the markets.

Characteristic of the importance given to developments on the Ukrainian front by investors, is that sellers have regained the lead despite the series of positive macroeconomic data announced today.

In particular, the economic recovery of the eurozone recorded a sharp rise in February, with the PMI recording a five-month high at 55.8 points.

At the same time, in Britain, private sector activity has recovered at the fastest pace since June 2021, as well as in Germany, which saw business activity move at the fastest pace in the last six months.

Elsewhere in the day-to-day business news, Credit Suisse said it was “strongly rejecting” allegations of leakage of data from thousands of its bank accounts over the past decades.