Stocks in New York fell as Ukrainian sentiment escalated. Following the S&P 500, the Dow fell more than 10% from its peak last month, entering correction territory. The Nasdaq Composite is close to entering a bear market from its peak. Oil prices also rose on concerns regarding supply and demand instability.
The Dow is down more than 10% from its January highs.
On the 23rd (Eastern Time) on the New York Stock Exchange (NYSE), the Dow Jones Industrial Average closed at 33,131.76, down 464.85 points (1.38%) from the previous day.
The Standard & Poor’s (S&P) 500 index fell 79.26 points (1.84%) to 4,225.50, and the Nasdaq index centered on technology stocks closed at 13,037.49, down 344.03 points (2.57%) from the battlefield.
The S&P 500 fell for the fourth consecutive day, while the Dow and Nasdaq fell for the fifth consecutive day. In particular, the Dow and Nasdaq indexes hit new lows this year. Following this, the S&P 500 and the Dow fell 10.34% from their January highs, entering correction territory. The Nasdaq Composite fell 19.58% from its peak, closer to a bear market (20%↓).
Of the 11 sectors in the S&P 500, all 10 sectors fell, except for energy (1.01%↑). △Consumer discretionary -3.42% △Consumer essential goods (STP) -0.82 △Financial -1.77% △Healthcare -0.51% △Industry -1.88% △Raw material -1.32% △Real estate -1.32% △Technology stock -2.56% △Communication service -1.73 % △Utility -1.72%, etc. were recorded.
The 10-year Treasury bond yield continued to rise and rose to the level of 1.98%.
The Chicago Board Options Exchange (CBOE) Volatility Index (VIX) recorded 31.02, up 2.21 points (7.67%) from the previous field.
◆European stock market level… The level of sanctions is lukewarm
On this day, major European stock markets remained at the same level as the day before.
The London Stock Exchange’s FTSE 100 index closed at 7,498.18, up 0.05% from the closing price of the previous trading day.
The Paris stock exchange’s CAC 40 index fell 0.10 percent to 6,780.67, and the German Frankfurt stock market’s DAX 30 index fell 0.42 percent to close at 14,631.36. The pan-European Euro Stoxx 50 index also fell 0.30% to 3,973.41.
Following the previous day, foreign media reported that the market paid attention to the fact that the West’s sanctions once morest Russia were more lukewarm than expected in relation to the Ukraine crisis.
On the previous day, the U.S. government placed sanctions on Russia’s largest state-run bank, the Foreign Economic Bank of Korea (VEB), the Defense Industry Support Special Bank (PSB), and 42 subsidiaries, and blocked all transactions with the West. decided to freeze.
The German government has suspended the approval process for the ‘Nord Stream-2’, an undersea natural gas pipeline linking Russia and Germany. The UK has also decided to impose sanctions on five Russian banks and three individuals.
The New York Times (NYT) reported that sanctions on state-owned banks, such as VEB and PSB, will have limited impact as they do not conduct retail banking for Russian citizens. Moreover, Russia’s foreign exchange reserves amount to US$631 billion (regarding 752 trillion won), the fourth largest in the world, and there are many prospects that it will sustain the external economy to some extent.
Experts are discussing Russia’s energy embargo, along with sanctions on Russian commercial banks such as Sberbank and VTB. However, such sanctions might also hit the global financial market.
◆ WTI rose 0.2% to $92.10 a barrel.
On the New York Mercantile Exchange (NYMEX), West Texas Intermediate (WTI) for April futures closed at $92.10 a barrel, up $0.19 (0.2%) from the previous trading day. On the London ICE Futures Exchange, April Brent crude was recorded at $96.84 per barrel, the same as the previous day.
Oil prices have been on an upward trend in recent years as the possibility of an all-out war between Ukraine and Russia has increased.
US State Department spokeswoman Ned Price told reporters that a Russian invasion of Ukraine was imminent and had seen no signs of a Russian withdrawal.
Archyde.com reported that the Biden administration is concerned regarding the possible damage to inflation and global oil markets from the sanctions imposed by Russia. Citing a government official, Archyde.com reported that the U.S. government is considering a variety of options, including halting U.S. gasoline taxes, restricting oil exports and securing oil reserves if Russia initiates an invasion of Ukraine.
“All options are being discussed,” the official said, but did not provide details, Archyde.com said.
Russia’s oil and gas imports last year, the world’s second largest oil producer, reached $119 billion, up 51% from the previous year. Foreign media analyzed that if the US imposes energy sanctions on Russia, Russia will turn to China. China has emerged as Russia’s largest exporter following sanctions were imposed following the occupation of Crimea in 2014.
[사진=AFP·연합뉴스]
- reporter information
- Yoon Joo-hye
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