Heavy losses in European markets earlier in the week, with investors continuing to worry about developments in Ukraine and a spike in US inflation, which, according to US Federal Reserve officials, is bringing growth closer. interest rates on its part.
In particular, tensions over Russian military aid near the Ukrainian border entering a potentially crucial weekwith the US warning that an invasion was imminent and Russian President Vladimir Putin accusing the US of not meeting its demands.
U.S. National Security Adviser Jake Sullivan, who on Friday referred to the danger of Russia attacking or trying to provoke a conflict inside Ukraine this week, told CNN on Sunday that there is “a clear possibility of significant military action very soon”.
In a telephone conversation between Putin and US President Joe Biden on Saturday, which lasted just over an hour, the two leaders reiterated their positions without any apparent progress.
In the meantime, Biden speaks by telephone with Ukrainian President Volodymyr Zelensky on Sunday, telling him that the US and other countries would act “swiftly and decisively” against any aggressive action by Russia.
Meanwhile, the US inflation rally continued with renewed momentum in Januarygiving new impetus to estimates that the Federal Reserve will be forced to take a more aggressive approach to tightening its monetary policy in the coming months.
The spike in inflation has “dramatically” changed the outlook of St. Louis Federal Reserve Chairman James Bullard, who he said last week he now wants a more aggressive response from the US Federal Reservewith an increase in interest rates by 1% until July.
Too much “abrupt and aggressive” interest rate hikes could be counterproductive San Francisco Fed Chairman Mary Daly said Sunday that the central bank is not yet ready to cut interest rates by half a percentage point next month, according to the US Federal Reserve. broadcast Reuters.
In this climate, the pan-European index Stoxx 600 falls 2% to 460 points, with the travel and leisure sector plunging 4.3% and recording the largest losses.
In the individual dashboard, the German DAX notes heavy losses of 2.5% at 15,040 points, the French CAC 40 falls by 2.3% to 6,850 points and the British FTSE 100 loses 1.1% to 7,570 points.
On the periphery, the Italian FTSE MIB slips by 2.7% to 26,220 points and the Spanish IBEX 35 is down 2.5% to 8,570 points.
In corporate news, the Spanish BBVA announced that it has agreed to acquisition of an additional percentage of 21.7% in Neon Paymentsfor $ 300 million, after its participation in the share capital increase.
In addition, Clariant has postponed the publication of its results for 2021, while an independent investigation is examining complaints about the forecasts it undertook, among others, during 2020 and 2021, the Swiss chemical group stressed.
The stock markets of the Asia-Pacific region are moving in the “red” at the start of the week, with the Japanese Nikkei 225 falling more than 2%, and the SoftBank Group title losing 4%.
Source: Capital
I am Sophia william, author of World Stock Market. I have a degree in journalism from the University of Missouri and I have worked as a reporter for several news websites. I have a passion for writing and informing people about the latest news and events happening in the world. I strive to be accurate and unbiased in my reporting, and I hope to provide readers with valuable information that they can use to make informed decisions.
