European stock markets fell sharply again and oil rose this Tuesdayamid growing concerns about the state of the world economy following the Russian attack on Ukraine and the sanctions imposed on Moscow.
The Frankfurt DAX index fell 2.77%, while the Paris CAC lost 3.09%, Milan -1.41% and London -1.08%. In turn, the Ibex 35 of Madrid yielded 2.43%.
For its part, Asian stock markets closed higher: Tokyo gained 1.20%, Hong Kong +0.21% and Shanghai +0.77%.
“European stock indices remain under negative pressure from the war,” commented SwissQuote analyst Ipek Ozkardeskaya.
On Monday, the European markets ended in the red: Paris and Milan lost 1.39% respectively; Frankfurt, 0.73% and London, 0.42%. In Madrid, the decline was slighter, 0.09%.
The New York Stock Exchange, which opened lower, ended mixed, weighing the impact of severe financial sanctions from the West.
Petroleum
The price of a barrel of US WTI soared more than 5% on Tuesday, while Brent, Europe’s benchmark oil, gained more than 6%.
The barrel of West Texas Intermediate (WTI) rose 5.42% to US$ 100.91 this Tuesday, reaching a maximum in 7 years, and the barrel of Brent (Ancap reference) advanced 5.76%, to US$ 103 .61 due to investors’ fear of ruptures in the Russian energy supply amid new threats of sanctions.
“The business world builds a fortress to isolate Russia from the international community,” said Susannah Streeter, an analyst at Hargreaves Lansdown.
And companies around the world are responding “by freezing transactions with Moscow and abandoning their financial investments worth billions,” he added.
Thus, the British hydrocarbon giant Shell announced on Monday to dispense with its participation in several joint projects with the Russian group Gazprom due to the invasion of Ukraine, following the example of BP that separated from the Russian company Rosneft.
Source: AFP
