Ukrainian war, heavy consequences on the financial markets
Government Bonds: spread opens up to 175 points, down rates
A rise in the spread between ten-year BTPs and German Bund counterparts. The differential started trading at 175 points, compared to 171 on the eve of the day. However, yields fell after the Russian attack in Ukraine: investors, in search of safe haven assets, are in fact buying government bonds at the expense of equity investments with consequent rate compression. The yield of the Italian 10-year falls to 1.889% against the 1.94% recorded yesterday at the end, while that of the Bund falls to 0.1475%. The spread of Russian securities is up, flying to 1,074.9 points, with rates increasing to 10.875%. The spread between Ukrainian and US bonds instead widened to 1,495 points, at the top since 2015.
Futures on European stock exchanges increase losses after the Russian attack on Ukraine. The contract on the Eurostoxx 50 drops 2.82%, the one on the Frankfurt Dax 2.94% and the one on the London FTSE 1.99%. Wall Street futures are also negative: the one on the Dow Jones falls by 1.79%, the one on the S&P 500 by 1.74% and the one on the Nasdaq by 2.15%.
Stock market: war in Ukraine sinks Asia, Hong Kong -3.2% – Asian stocks plummeted after the invasion of Ukraine by Russian troops. Hong Kong lost 3.2%, Seoul 2.6%, Tokyo 2%, Shenzhen 2.2% and Shanghai 1.5% on the fear triggered by the outbreak of the conflict. Sydney closed 3% lower.
Oil: the race does not stop, Brent above 102 dollars – The run of Oil does not stop, rising to its highest levels since summer 2014. The futures contract on Brent gains 5.52% at 102.19 dollars a barrel, while the one on WTI advances by 5.32% to 97 dollars.
Ukraine, ruble at an all-time low, Asian stock exchanges plunging – The ruble is at an all-time low against the dollar of 86.81 with a drop of more than six percent after the announcement of the Russian invasion of Ukraine, trading on the Moscow exchange has been suspended, Asian markets are in steep decline, the dollar is gaining ground together with gold and oil is moving above 100 dollars a barrel for the first time since 2014. These are the first reactions of the markets to the entry of Russian troops on Ukrainian soil.
READ ALSO:
Putin declares war in the middle of the night: do not interfere or terrible consequences
Ukrainian war, invasion started: bombs on Kiev. Putin’s total attack
Ukraine, Zelensky introduces martial law. “Putin wants the great war”
The Ukrainian president: “it could be a great war in Europe”
#Ukrainian #war #futures #stock #exchanges #collapse #Oil