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

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MARKET REVIEW. Markets retreated on Tuesday as they awaited new sanctions on the Western economy against Russia that could target the energy sector, realizing that the war in Ukraine could still linger.

After a breakeven open, European indexes lost ground, concerned about developments in the war in Ukraine after the discovery of corpses in the Kyiv region blamed on the Russian military, which denies any involvement.

On Wall Street, futures contracts on major indices sketched a small decline at the opening.

Stock indices at 7:37 am

In the United States, futures contracts Dow Jones dropped 80.00 points (-0.23%) to 34,749.00 points. Futures contracts S & P500 fell 10.50 points (-0.23%) to 4,567.25 points. Futures contracts Nasdaq dropped 35.00 points (-0.23%) to 15,129.25 points.

In Europe, the results are down. In London, the FTSE 100 retreated 5.15 points (-0.07%) to 7,553.77 points. In Paris, the CAC 40 decreased by 107.88 points (-1.60%) to 6,623.49 points. In Frankfurt, the DAX dropped 78.27 points (-0.54%) to 14,439.89 points.

In Asia, the Nikkei Tokyo closed with 51.51 points (+0.19%) at 27,787.98 points. For his part, the hang Seng said Hong Kong scored 462.76 points (+2.10%) to 22,502.31 points.

On the oil side, the price per barrel of WTI American rose US $ 0.64 (+0.62%) to US $ 103.92. The barrel of North Sea Brent rose US $ 0.63 (+0.59%) to US $ 108.16.

The context

The European Union is discussing sanctions on Russia’s coal and oil imports, EU Trade Commissioner Valdis Dombrovskis said before a meeting of EU finance ministers in Luxembourg to discuss the content of a fifth package of sanctions on Europe.

Unity is needed for new measures to be adopted, but both Germany and Austria are highly reserved, given the cost incurred in their economic activity that is highly dependent on Russia’s fossil fuels.

“Uncertainty remains in the decisions to be made,” Christian Parisot wrote, for broker Aurel BGC.

And “investors understood this was going to be a long conflict,” said Christopher Dembik, director of macroeconomic research at Saxo Bank.

Beijing reiterated its call for peace talks to resolve the conflict.

European Commission President Ursula von der Leyen will travel “this week” to Kyiv, accompanied by EU Foreign Minister Josep Borrell.

The prospect of sanctions on Russia’s energy exports continues to drive up oil prices.

“Fears that Europe is finally targeting Russia’s energy sector, cutting supplies even more, are rising,” said Oanda analyst Jeffrey Halley.

The euro stabilized on Tuesday against the dollar after stumbling the previous day, the market remains focused on the situation in Ukraine. At 6:45 am Quebec time, the euro was trading for 1.0962 US dollars (-0.10%).

The bitcoin rose 0.75% to US $ 46,660. The British government said on Monday that it wanted to boost the United Kingdom’s attractiveness to the cryptocurrency sector.

On the government side, bond yields rose everywhere and 2-year U.S. government bond rates remained above 10-year rates, an indicator of recession risk.

Prior to the U.S. central bank’s monetary policy update to be released on Wednesday, investors will listen intently to speeches from some Fed members due to market expectations of monetary policy restrictions and the effect of inflation on household purchasing power.

Amazon on Tuesday announced unprecedented contracts with three galaxy launch companies, including Europe’s Arianespace, for 83 launches with a total of thousands of satellites in its high-speed internet constellation. The action yielded 0.32% before the opening of Wall Street.

Other stocks in the digital and technology sector, which brought up indices on Monday, continued their momentum as platforms Delivery Heroes (+5.21%), HelloFresh (+4.19%), Zalando (+1.11%) in Frankfurt. Dassault Systems was on top of CAC 40 (+ 1.51% to 46.27 euros) in the middle of the session.

The American investment fund KKR sent a letter on Monday night to Telecom Italy (TIM) to repeat its request to have access to its accounts within the framework of a “due diligence”, without which it will lose the prospect of a takeover bid, according to a financial source.

Meanwhile, the title lost 1.52% to 0.311 euros on the Milan Stock Exchange, after losing 1.92% at the close the previous day, investors are afraid that KKR will give up its offer if TIM denies it access in its accounts. .

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