The indices, which had opened higher, closed in the red in Frankfurt (-1.47%), Paris (-0.25%), Milan (-0.61%) and London (-0.32%). In Zurich, the SMI dropped 0.54%.
Markets fell on Friday due to lack of geopolitical visibility as the situation deteriorated in eastern Ukraine, where Kiev and pro-Russian separatists accuse each other of renewed violence.
The European indices, which had opened higher, ended the session in the red in Frankfurt (-1.47%), Paris (-0.25%), Milan (-0.61%) and London (-0, 32%), marking their third consecutive decline this week. In Zurich, the SMI lost 0.54%.
On the New York Stock Exchange, the Dow Jones was down 0.66%, the Nasdaq was down 1.08% and the S&P 500 was up 0.79% at around 5.20pm GMT.
“The tone in European markets was initially positive heading into the weekend, with the negativity of the previous day replaced by cautious optimism as investors believed there would be no negative developments ahead of the meeting between the head of American diplomacy Antony Blinken and his Russian counterpart Sergei Lavrov” scheduled for next week, describes Michael Hewson, analyst at CMC Markets.
“Unfortunately, the gains disappeared after reports that pro-Russian separatists in eastern Ukraine were evacuating their civilians to Russia for their own safety,” he continues.
Tensions were at their height on Friday in eastern Ukraine, with clashes multiplying and pro-Russian separatists ordering the evacuation of civilians to Russia while the United States denounces a “scenario” of provocations to allow an intervention Russian military.
In this perilous context, government borrowing rates played the role of safe-haven assets and yields were on the downside. The US 10-year rate stood at 1.93% after breaking the 2% mark last week. The price of gold, meanwhile, climbed over the week to a new high since June at $1,902.48.
Investors also had to contend with a first key rate hike by the US central bank in March in the face of a surge in inflation.
Sales of existing homes in the US were much stronger than expected in January, rebounding 6.7% from December as buyers rushed ahead of the expected rise in interest rates.
Insurers caught in the storm Eunice
The securities of insurers suffered from the passage of storm Eunice which hit the United Kingdom on Friday and killed one person in Ireland before heading towards northern France and Belgium. In London, Prudential lost 1.94% to 1,160.50 pence and Aviva (-0.02% to 432.20 pence). In Paris, Axa fell 0.99% to 26.92 euros.
The German insurer Allianz (-3.78% to 214.10 euros) estimated on Friday that it had settled a “substantial” part of its litigation in the United States aimed at its asset management, resulting in a provision of 3.7 billion euros. euros in its 2021 accounts announced the day before.
Natwest returns to profit
In London, the Natwest bank lost 2.5% to 234.30 pence despite the announcement of a return to profits last year and the prospect of higher rates.
Intel expects several difficult years
The semiconductor manufacturer Intel fell (-5.75% to 44.81 dollars), the day after a presentation to investors during which the company indicated that it did not expect a significant improvement in its margins before 2025.
Aside from oil, euro and bitcoin
Oil’s decline continued on Friday as the market clung to hopes of an easing in the Ukraine crisis and a return of Iran to the market.
Around 5.20 p.m. GMT, the price of an American barrel of WTI for March delivery fell 0.98% to 89.12 dollars and that of a barrel of Brent from the North Sea for April due dropped 0.73% to 92.29 dollars.
One euro traded for 1.1323 dollars (-0.36%).
Bitcoin continued to suffer from risk aversion (-1.05% to 40,266 dollars), after falling 7.70% on Thursday.