Stock markets around the world turned red with an eye on the geopolitical tension in Ukraine. The statements of a US official raised alarms regarding a possible invasion of Russian troops. As the hours passed, the losses in the main markets began to deepen.
Wall Street started its operations with the wrong foot, and its main indicators fell 1.78% with attention focused on what is happening on the Ukraine border. This following the United States and the United Kingdom said that Russia has not withdrawn troops and that it continues to accumulate forces. Russia, for its part, indicated that it will take time to withdraw troops from the border.
“We must be attentive to how the conflict between Russia and Ukraine evolves, surely we should continue to see volatility in the markets in general for this reason,” said José Tomás Riveros of Capitaria.
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On the other hand, investors are closely following corporate earnings releases, and are still digesting the minutes published this Wednesday by the Fedwhich considers it appropriate to raise interest rates soon.
European markets also pulled back with an eye on developments on the Ukrainian border. The US ambassador to the United Nations said Russia is moving toward an imminent invasion, and that US Secretary of State Anthony Blinken will speak later.
The main European indicator fell 0.75% in the midst of this scenario, and given the corporate results that continue to be published daily.
Santiago Stock Exchange
The Santiago stock market was also linked to the pessimism of the international markets. The focus is on events in Ukraine and also on the votes that are taking place in the plenary session of the Constitutional Convention, which has already begun to vote in general some rules. Now the voting in particular of the articles that will be part of the new Magna Carta is missing. This Thursday the first articles in particular will be voted on.
In the middle of this scenario, the IPSA yielded 2.23% and fell below 4,600 points.
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Photo: Agency One.
“On the political side, the uncertainty of what might happen with the proposals of the constituents does not provide much calm either. We see some constituents who are already looking at the option of rejection, and on the other hand we see a constitutional convention, very focused on their ideals, and not with a greater focus on future cross-cutting agreements”, said Riveros from Capitaria.
He also emphasized that what happens in Ukraine will also be key in the movement of the markets.
