Home Business Stock exchanges collapse on fears of Ukraine and US rate hike

Stock exchanges collapse on fears of Ukraine and US rate hike


Sales increase a Piazza Affari and on bags international after Wall Street starts in negative territory. The geopolitical tensions in particular weigh on the mood of investors Ukraine which are added to the expectations for the Federal Reserve meeting on Wednesday which could provide indications for US interest rate hikes starting in March.
No such downturns have been seen since spring 2020 in the middle of first wave of the Covid pandemic.

Bags all in red

The index on Piazza Affari Ftse Eb it travels around the lows of the day at 26,020 points (-3.8%) with all the index titles in red. At the bottom of the price list Stellantis which yields more than 6.5%. Among the worst also CNH (-4.9%) and Exor (-4.655). Over -4 percent for Pirelli, Interpump, Inwit and Nexi. Banks are also in the red with Banco BPM losing over 4% while Intesa Sanpaolo and Unicredit leave 3% on the ground.

TO Frankfurt the Dax lost 2.6% while a New York the S&P 500 index fell by 2% and the Nasdaq by 2.4%, approaching important long-term technical levels that could decree the end of the long bullish rally.

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Today’s declines add to the declines highlighted in recent weeks. In this first part of 2022, the main share markets were targeted by profit-taking, among which, at the close of last Friday, the -11% of the Nasdaq and -7.90% of the index S&P 500. The drop in European lists with ours is less severe Ftse Eb which since the beginning of the year has recorded a -2.18%.

US interest rate hikes

On the central bank front, Goldman Sachs he wrote over the weekend that he expects a faster pace of interest rate tightening by the Fed with the possibility that the FOMC take restrictive action at each meeting starting from March until the inflation picture, now at 7% on the highs of the last 40 years, will not change. At least 4 hikes in US interest rates are expected by the end of the year.

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Tensions between Russia and Ukraine

In addition there are the tensions geopolitical between the United States and Russia which are helping to keep investors away from risky assets. The New York Times reported that President Joe Biden is considering sending 50,000 troops to Ukraine.
For weeks there have been huge movements of soldiers and heavy vehicles from Moscow ai borders with Ukraine for which an invasion is feared.

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