‘Wall Street closes in red’, the different media around the world headlined this Wednesdayafter seeing that the Dow Jones Industrial Average -its main indicator- fell by 1.38, ending at its lowest level of this beginning of 2022.
The reason? The escalation of tensions between Russia and Ukrainea situation that had already been hitting hard the Global economymainly European.
(Due to the public interest aroused by the events between Russia and Ukraineall our coverage of that invasion and related actions will have free access for all readers of EL TIEMPO).
And it continues to do so, with the continent’s main stock markets falling percentage-wise: that of Milan fell by 2.67% and that of London collapsed by 2.68%, both in full opening during the morning of this Thursday.
(You can read: Ukraine calls for volunteers to take up arms after Russian attacks).
The crash of the New York Stock Exchange
In the case of NYSEat the end of its operations on Wednesday, the Dow lost 464.85 points, to 33,131.76 units, while the selective S&P 500 fell 1.84% or 79.26 integers, to 4,225.50 points, to enter even more in correction territory being 12% below its highest level.
For his part, andThe Nasdaq Composite Market Indexwhich brings together technology companies, fell 2.57% or 344.03 units, to 13,037.49 integers.
Wall Street had already ended in negative territory, after closing in the red both this Tuesday and last Friday, when posted cumulative weekly losses of over 1% across all three benchmark indices.
(We recommend you read: Ukraine claims that it recaptured the city in Lugansk and killed 50 Russian soldiers).
“Stocks will struggle to find a direction until financial markets have a clear answer on whether the crisis between Russia and Ukraine will have a diplomatic solution or will end in a regional war.“explained Oanda market analyst Edward Moya.
Largest losses, non-essential consumer goods
Except for energy, which advanced by 1.01%, all sectors ended in red, and the greatest losses were for non-essential consumer goods (-3.42%), technology (-2.56%), industrial (-1.88%) and financial (-1.77%) .
A majority of the 30 Dow Jones stocks ended the session with losses, with Cisco Systems (-3.30%), Microsoft (-2.56%), Apple (-2.48%) and Home Depot falling especially sharply. (-2.44%). Only two companies finished with profits: Chevron (2.41%) and Johnson & Johnson (0.05%).
In other markets, the price of oil Texas Intermediate (WTI) rose to $92.10 and at the close of trading, gold was at $1,911.50 an ounce; the 10-year Treasury bond yield advanced to 1.988% and the dollar gained ground against the euro, with an exchange rate of 1.1304.
Raw materials more expensive than ever
have also been fired energy commodity pricesput upward pressure on assets traditionally considered a safe haven for investment, such as gold and public debt.
(You may also be interested in: War in Ukraine: NATO activates its defense plans against the invasion).
Shortly after 9:30 pm, an ounce of gold rose 2.05% and cost $1,948, a level not reached since January 2021, in the midst of the third wave of coronavirus and when mass vaccination of the population had barely begun. , according to data from ‘Blommberg’ consulted by ‘EFE’.
World oil prices on the rise
On the other hand, the price of Brent crude for delivery in April soared above 102 dollars, 5% more than the day before and its highest value since July 2014.
The price of Brent marked a peak of $102.48 shortly before 6 a.m. (Greenwich Mean Time) and was holding at $102.16 at 6:30 a.m.
Russia is the second largest oil exporter after Saudi Arabia, but also the largest producer of natural gas. Analysts believe that the price escalation will continue as the war in Ukraine grows and that it could exceed 120 dollars in its price.
(We recommend: Ukraine and Russia: Is there a danger of a Third World War?).
Western powers have announced a series of sanctions with the potential to damage the Russian economy, which is based above all on the sale of raw materials.
More news
Jail will charge its inmates for each day they are in the cells
Meta reveals its artificial intelligence projects for the metaverse
This would be the last thing people think about before dying, according to a study
Trends WEATHER
*With information from EFE and AFP
#global #economy #tailspin #due #war #Russia #Ukraine