What was supposed to be a calm day in the markets has quickly turned into a volatile session with European stock markets falling more than 1% shortly before midday. The news coming from Russia that has to do with the war in Ukraine is not good and has brought back uncertainty.
After a flat opening, shares have retreated after Russian President Vladimir Putin approved an updated nuclear doctrine that allows Russia to expand its use of atomic weapons. A decision that comes days after the US gave Ukraine limited permission for long-range missile attacks on Russian territory.
Among European stock markets, the EuroStoxx 50, the benchmark index in Europe, fell 1.25% to 4,730 points. In Spain, the Ibex 35 drops more than 1.3% and plays 11,500 integers. Proof that risk aversion (risk off mode) has prevailed has been the rise in safe haven assets such as US Treasury bonds (yields fall) and the yen.
“It’s clear that it’s not good at all,” analyzes Andrea Tueni, head of sales negotiation at Saxo Banque France. “The situation may get worse before it gets better in the coming weeks, so it’s something investors should keep in mind.”
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