Stock market: what moves in the markets before the opening on Thursday

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MARKET REVIEW. European stock markets fell sharply on Thursday, still worried about the effects of the Russian-Ukrainian conflict and awaiting the European Central Bank’s reaction to the war in Ukraine.

The other day, the Western stock market experienced a strong rebound with rates of change exceeding 7% in Europe. Thursday morning, Asian stock markets also caught this rebound.

A breath of fresh air in the order of a “technical rebound”, after several sessions of sharp decline, even the possible abandonment of a request for NATO membership on the part of Ukraine and the collapse of oil, despite the US embargo on Russian. hydrocarbons, supported this trend.

In New York, the three major indices will soon open lower.

Stock market indices at 7:40 am

In the United States, futures contracts Dow Jones decreased by 259.00 points (-0.78%) to 33,006.00 points. Futures contracts S & P500 dropped 34.25 points (-0.80%) to 4,241.00 points. Nasdaq futures lost 162.50 points (-1.18%) to 13,572.25 points.

In Europe, markets are red. In London, the FTSE 100 dropped 87.56 points (-1.22%) to 7,103.16 points. In Paris, the CAC 40 yielded 156.29 points (-2.45%) to 6,231.54 points. In Frankfurt, the DAX dropped 392.14 points (-2.83%) to 13,455.79 points.

In Asia, the Nikkei Tokyo finished with 972.87 points (+3.94%) at 25,690.40 points. For his part, the hang Seng said Hong Kong finished with 262.55 points (+1.27%) at 20,890.26 points.

On the oil side, the price per barrel of American WTI rose US $ 4.23 (+3.89%) to US $ 112.93. The barrel of North Sea Brent rose US $ 4.88 (+4.39%) to US $ 116.02.

The context

Thursday the Ukrainian and Russian foreign ministers met, for the first time since the aggression began, in Turkey for talks that began around 3:30 am Quebec time.

In addition to news on the Ukrainian front, investors will soon follow the European Central Bank (ECB) monetary policy meeting, the first since the conflict began.

In this context, ECB President Christine Lagarde needs to find words to explain that the central bank wants to remain flexible, while reaffirming its desire to fight inflation, while America’s central banks and Britain is showing more determination. .

The ECB gave way in February for a “normalization” of its policy after two years of widespread support for the economy in the face of the COVID-19 pandemic. Analysts are hoping for a possible increase, by the end of the year, of key rates, which are still historically low.

But in a war at the gates of Europe and the sanctions taken against Russia, the risk of “stagflation”, a frightening combination of inflation and economic stagnation, has “clearly risen”, Carsten Brzeski’s observation, economist at ING.

The publication of the consumer price index for February in the United States is also on the agenda. For Ipek Ozkardeskaya, analyst at SwissQuote, a “bad surprise” cannot be excluded “given the current circumstances”.

“The question is to what extent rising inflation could change the expectations of the Federal Reserve (Fed)”, the analyst added.

The recent surge in commodity prices will certainly exacerbate inflation according to analysts, starting with rising energy prices.

European natural gas fell 7.30% to 144.5 euros per megawatt hour (MWh), after a record close to 350 euros per MWh on Monday.

After the yo-yos of recent days, the sectors most exposed in Russia have experienced less spectacular variations.

Moreover, the sanctions imposed on Russia’s oligarchs continue to upset the markets. The action of Russia’s iron giant Evrazof which Roman Abramovich is the major shareholder and has been the subject of an asset freeze by the British government, fell nearly 10.65% to 82.68 pence in London around 5:40 am It has lost 76% of its value since the start of the year.

The euro fell 0.28% against the greenback to 1.1045 US dollars.

The bitcoin (-6.58% to US $ 39,140) gave up most of the recent gains earned after the launch of the “digital dollar” project.

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