Ukraine-Russia war, black Monday for Europe: banks, energy and automotive are weighing
The tightening of Western sanctions against Russia and the uncertain outcome of diplomatic talks to stop the war in Ukraine send European stock exchanges back into ‘red’ (which only reduce losses at the end). After the illusory rebound on Friday, the lists of the Old Continent were again hit by sales, with Milan losing more than 3%. At the end of the day, the Ftse Mib left 1.4% on the field, ballasted above all by banks, like the rest of the sector on a continental level. Now in the fifth day of the conflict, investors’ flight from risk continues to penalize credit institutions, the auto industry and the insurance industry.
To avoid the debacle of the indices, in addition to the substantial stability of Wall Street, is the defense sector, which sees new orders arriving on the wave of military escalation thanks to the prospects of rearmament in Germany and more generally in Europe Western in response to Russian aggression. In the meantime, with the activities of the Moscow Exchange suspended and the ruble now at a peak, the markets have to deal with the selective blockade of the Swift interbank circuit for some Russian institutions, the ban on transactions with the Russian Central Bank decided by the The US and the nuclear spectrum stirred up by Vladimir Putin, who in the afternoon again demanded that ‘Ukraine be neutral’. On the Ftse Mib session to be forgotten for UniCredit (-9.5%) at the lows for three months and Intesa Sanpaolo (-7.4%).
Leonardo jumped 15.1% against the trend after Germany announced an increase in military spending in response to the conflict in Ukraine. A position that, according to analysts, will soon be followed by other European countries. Oil and utilities are doing well, benefiting from the probable acceleration of the energy transition to limit dependence on gas. On the foreign exchange front, the euro is still weak, trading at 1.1231 dollars (from 1.1248 on Friday at the end).
The single European currency also stands at 129.53 yen (130.05), while the dollar / yen ratio is at 115.27 (115.62). Finally, the price of oil rose sharply, supported by the risks of interruption of the supply chains of raw materials following the Ukrainian conflict: the April WTI future rose by 4% to 95.3 dollars a barrel, while the analogous delivery on Brent trades at $ 100.9 (+3 percent).
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