The comeback of European stock exchanges fades, but they remain positive: after a first hour of trading in the name of coverages and supported by the example of Tokyo and the performance of Wall Street in the last part of the session on 24 February, it prevails over the main continental indices caution looking at the evolution of the Russian invasion of Ukraine and its geopolitical and economic consequences. Piazza Affari (FTSE MIB) is kept afloat by utilities (Enel, A2a), by gas and energy infrastructure companies (Terna, Italgas, Snam) and by Prysmian. The reference index of the Milanese list, which comes from -4.1% in the last session, returns below 25 thousand points. Paris (CAC 40) is the liveliest in the eurozone, London the best in Europe.
The indexes of the Moscow Stock Exchange rose by around 20% and the ruble also recovered ground against the dollar and the euro.
Gas prices are holding back, but also gold and metals
If the dollar turns around, falling again and the exchange rate with the single currency hangs up at 1.12, the price of gas in Europe deflates (-16% to 112 euros per megawatt hour) and the oil rush continues (Brent a $ 101 per barrel in April delivery and Wti April at $ 94.6 per barrel). Gold prices are holding back at 1915 dollars an ounce (in the previous session they had arrived in the 1975 dollars area) while in London the stocks of the metals most sensitive to the situation in Eastern Europe (nickel, palladium, aluminum) are decreasing by virtue of of Russia’s prominent position as a global producer.
After the disastrous session on the eve of the day, investors returned to buying stocks, encouraged by the announcement of the sanctions decided by the US and its allies. Fewer sanctions than expected as Russia has not been kicked out of the Swift system, which is used for global financial transactions – although French minister Bruno le Maire said “the Swift last resort option remains on the table” – and the energy sector has not been hit hard either. The situation, however, is fluid as the Russian attack on Ukraine continues.
Asia rebounds, Tokyo closes up 1.9%
The Asian stock exchanges closed sharply after the crash of the eve of Russia’s attack on Ukraine. Investors assess the impact of the global conflict and the international community’s sanctions on Russia. Closing in sharp rise for Tokyo (NIKKEI 225). On the foreign exchange market, the yen continues its revaluation phase against the dollar at 115.20, and has changed little against the euro at 129.20. Shanghai (SSE Index), Seoul (Kospi), Mumbai are also still on the rise. In contrast Hong Kong (HANG SENG).