The main international stock indicators returned to operate this Tuesday in a sharp drop, while the prices of some grains and oil reached new records, in another day marked by the uncertainty caused in the markets by the Russian invasion of Ukraine and the economic sanctions imposed to Moscow.
European stock markets fell sharply again and oil prices soared due to concerns about the situation of the world economy: the Frankfurt DAX lost 3.85%, the Paris Cac 40 3.94%, the London FSE 100 1.72%, the Milan FTSE MIB lost 4.14 % and the Madrid Ibex 35 3.94%.
“European stock indices continue to be under negative pressure from the war,” commented SwissQuote analyst Ipek Ozkardeskaya.according to the AFP agency.
While, In New York, the Dow Jones Industrial Index lost 612.58 units (-1.81%) up to 33,280.02, the technological Nasdaq Composite lost 238.47 points (-1.73%) to 13,512.93; and the expanded S&P’s 500 index gave up 65.83 points (-1.51%) to 4,308.11.
In this way, the New York stock market deepened its fall when the war intensifies in Ukraine and new sanctions by Western powers against Russia are outlined, while raw materials soar.
The price of oil also increased exponentially due to the conflict in Eastern Europe: the barrel of US WTI soared more than 10% and Brent, the reference oil in Europe, rose more than 9%.
Following the start of the Russian invasion of Ukraine and Western sanctions against Moscow, Both indices reached record levels since 2014, with a value of US$106.29 a barrel for WTI and US$107.44 for Brent.
“The business world builds a fortress to isolate Russia from the international community,” commented analyst Susannah Streeter, adding that companies around the world are responding “by freezing transactions with Moscow and abandoning their financial investments worth thousands of dollars.” of millions.”
Reflecting investors’ flight to safe havens like bonds, yields on 10-year US Treasury bonds continued to slide, to 1.70%, a 1-1/2-month low.
For its part, Grain prices continued their upward trend in the Chicago market, with increases of US$27 in wheat, more than US$22 in soybeans and almost US$17 in corn.
In the case of cereals, wheat rose 7.95% (US$27.10) and stood at US$368.08 per ton, while the price of corn rose 6.06% (US$16.63). ) and ended operations at US$ 291.23 per ton.
Wheat had already reached a record price on Monday night, while in the case of corn, its previous highest value was recorded on August 4.
Similarly, the March oilseed contract increased 3.73% (US$22.51) to US$626.66 per ton, while the May position advanced 3.25% (US$19.57). and ended the day at US$ 620.97 per ton.
Soybean by-products also joined the upward trend, with gains of 5.36% (US$86.20) to end the session at US$1,693.13 per ton; while flour advanced 1.93% (US$9.70) to close at US$511.14 per ton.
Ukrainian ports remain blocked and demand is high, with “buyers looking for solutions” to replace Ukrainian cargoes they expected to receiveexplained the market operator Damien Vercambre to AFP.
“Nothing has changed at the moment, but the markets are beginning to become aware of the situation. Exports are totally interrupted and it is urgent to find new outlets,” he explained, adding that “China was expecting the delivery of between four and five million tons of Ukrainian corn and now it tries to get supplies in another way.”
