Because of the sanctions once morest Russia following its military operation in Ukraine, European stocks are falling today, while a barrel of oil jumped above the level of $100 a barrel.
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Wall Street is expected to open 1% lower in New York
European stock markets fell on Tuesday, due to… Sanctions once morest RussiaOil jumped once more above $100 a barrel.
According to “Archyde.com”, losses for the European “Stoxx” 600 index began to rise once more, as the index fell by regarding 2% by the middle of the session, and “Wall Street” is expected to open lower by regarding 1% in New York later.
There were gains in the beginning for mining and oil and gas shares, but even those shares were nervous, while banking shares witnessed a significant decline of 4%, as investors now feel that raising interest rates may be delayed.
“Assuming there is no quick resolution to this conflict in Ukraine, we fear global GDP will fall by 0.5%-1.0%,” said Paul Jackson, global head of asset allocation research, Invesco.
“This decline is enough to exacerbate the ongoing slowdown, but not enough for a full-blown recession,” he emphasized, although some parts of Europe might stagnate, and inflation is also likely to remain higher for a longer period.
With Russia being one of the world’s largest oil producers, Brent crude futures rose $4.51, or 4.6%, to $102.75 a barrel, a value just below a seven-year high of $105.79, following the start of military operations in Ukraine. .
Natural gas prices in Europe have also jumped regarding 15%, and oil and gas prices have risen by almost 60% since fears of an invasion of Ukraine began to escalate in November 2021.
“The fragile situation in Ukraine and the financial and energy sanctions once morest Russia will exacerbate the energy crisis,” said Louise Dixon, a senior oil market analyst at Rystad Energy. If the conflict escalates further.
and imposed European countries A wide range of sanctions once morest Russian companies and banks, while isolating Russia from the Swift financial system is being discussed.
The US Treasury also announced the imposition of “sanctions on a range of Russian institutions” and indicated that it had ordered all US banks to close any accounts they had with these entities within a month.
