Frankfurt finally fell by 0.42%, Milan by 0.62%, Paris by 0.10%, only London managing to preserve a gain of 0.05%. In Zurich, the SMI lost 0.15%.
Global equity markets lost their early trading momentum on Wednesday with further signs of renewed tension in the Russia-Ukraine conflict.
After a sharply higher opening, Wall Street was more cautious: the Dow Jones rose by 0.21%, the S&P500 by 0.08% while the Nasdaq crumbled by 0.06% around 5:25 p.m. GMT.
On Tuesday, the S&P 500 had entered the correction zone, a loss of more than 10% compared to its high.
In Europe, the net gains during most of the session soared in the last two hours of trading: Frankfurt finally fell by 0.42%, Milan by 0.62%, Paris by 0.10%, only London managing to preserve a gain of 0.05%. In Zurich, the SMI lost 0.15%.
If, at the start of the session, investors had focused on “good corporate results” and Western sanctions once morest Russia “lighter than expected”, the mood changed in “half an hour” , underlines Michael Hewson, analyst of CMC Markets.
He underlines in particular the revelation of a “massive” cyber-attack in Ukraine affecting official sites, such as that of Foreign Affairs, or banks according to Deputy Prime Minister Mykailo Fyodorov.
At the same time, the Armed Forces of Ukraine announced the death of a soldier in a shelling by pro-Russian separatists on the front line in eastern Ukraine.
The renewed intensity of violence on this front, the scene for eight years of a war with separatists supported by Russia, makes the West fear an imminent Russian invasion.
Russia also promised a “strong” and “painful” response to US sanctions on Wednesday.
Among asset managers, “we feel that everyone is hesitant to invest. They expect stability, but Vladimir Putin is capable of anything, that’s what is disturbing,” explains Philippe Cohen, manager of Kiplink Finance.
Commodities amid tensions
Oil prices continued to fluctuate according to events in Eastern Europe.
Around 5:10 p.m. GMT, the price of a barrel of Brent from the North Sea for delivery in April took 0.18% to 97.01 dollars, following having taken more than 1.50% at the end of the European session.
In New York, a barrel of West Texas Intermediate (WTI) at the same maturity, which is the first day of trading, rose 0.12% to 92.03 dollars.
Companies present in Russia neglected
The mining company Evraz, fell 12.55% following “reports that the main shareholder Roman Abramovich might find himself under sanctions if the situation between Russia and Ukraine were to worsen”, Mr. Hewson said.
In Paris, Renault, established in Russia via its subsidiary Avtovaz, fell 4.27% to 32.14 euros while Stellantis jumped 4.54% following its results.
Alstom (-2.91% to 23.66 euros) which owns 20% of the railway manufacturer Transmashholding, Société Générale (-1.11% to 31.08), via its subsidiary Rosbank, were also concerned.
Cybersecurity wanted
On the Nasdaq, cybersecurity firm Palo Alto Networks was sparking (+3.08%) following posting sales up 30% and raising its profit and revenue forecasts for the full year.
Securities of companies in the sector were generally on the rise in the context of the Russian-Ukrainian crisis, noted Dan Ives, analyst for Wedbush.
CyberArk Software took 0.95%, Fortinet 0.07% on Wall Street.
In London, Darktrace took 2.44%.
On the side of the euro and bitcoin
The euro yielded 0.10% to 1.1313 dollars.
Bitcoin rose 2.32% to $38,775.
