24 blazing hours of global financial markets

 24 blazing hours of global financial markets

From Asia, Europe to the US, key financial markets were all in the red after Russia attacked Ukraine, but towards the end of the session, bottom-fishing cash flow became more and more active.

Escalating tensions in Ukraine caused Wall Street to open the 24/2 session in the red. The strong selling pressure caused all key indexes to drop deeply. The S&P 500 fell 2.5% at the open, entering a correction zone. The index is down nearly 14% from the record close on January 3, as of the beginning of the session yesterday.

The Dow Jones Industrial Average at one point fell more than 800 points, or 2.4%, and lost about 12% from the previous record. The Nasdaq Composite fell 2.5% early in the session, entering "bear market territory" after losing more than 20% from its November 2021 peak.

Russia's move "is actually worse than our forecast and the whole market. We're talking about a 5% to 6% drop. This could send the market down almost 20% or enter a price market. down," said Binky Chadha, global strategist at Deutsche Bank.

Brent crude rose 7.7% to $104.56 per barrel, surpassing $100 for the first time since 2014. US WTI crude traded 7.2% higher around $100, while gas natural combustion increased by 5%.

US Treasuries rose, yields fell as investors sought safe havens. The move reversed gains in yields, which had hit more than 2% on 10-year notes in the previous session. Gold, another "safe-haven" channel, also rose 3.2% to $1,970 per ounce.

The CBOE index, Wall Street's fear gauge, spiked above 37 on Thursday, close to hitting its highest level since the start of the year. However, just a few hours before closing, the buying force was massively bottom-fishing when the market fell deeply and pulled Wall Street back into the green, much to the surprise of many investors.

The S&P 500 jumped more than 63 points, closing up 1.5%. Nasdaq Composite added 3.3%, while the Dow Jones Industrial Average also returned to the green. "Stocks don't always move the way we expect," said Callie Cox, investment analyst at eToro US.

"We're sitting here processing and trying to understand what the new developments mean for the global economy, but first of all, fear is a contrarian indicator. Right now we're all really real. fear, but some investors may see this as a time to roll back," the expert added.

Large companies in the technology sector experienced strong fluctuations. Amazon, Netflix, Alphabet and Microsoft all closed higher despite plunging in the early hours on selling pressure. Netflix shares rose 6.1%, Microsoft rose 5.1%. Alphabet - the parent company of Google and Meta added 4% and 4.6%, respectively. Oil prices narrowed their gains but remained close to the $100 per barrel threshold.

Unlike Wall Street, miracles do not happen with European stocks. The region's main markets sold off sharply at the opening session on February 24, after Russia turned a prolonged diplomatic crisis in Ukraine into a military conflict.

The European Stoxx 600 Index fell 3.6% to its lowest level of the year. The FTSE 100 of the London Stock Exchange (UK), and the DAX Index of the Frankfurt Stock Exchange (Germany) all fell nearly 4%. The downtrend is maintained until the close.

The VanEck Russia ETF, an ETF that invests in leading Russian companies, is down nearly 16% today. "The worst case scenario is that Russia lands in Ukraine outside the breakaway regions, which would turn out to be a shock to the stock and oil markets," said Kathy Bostjancic, chief economist at Oxford Economics. .

According to this expert, in the face of such an uncertain economic situation and negative influence, the US Federal Reserve - Fed is likely to raise interest rates by only 25 percentage points in March, but it will continue. customary.

Before that, in the Asian market and especially in Russia, red covered. Major Asian markets such as Japan, Korea, and China all recorded sharp declines. Russia's RTS index at one point fell as much as 49.93%, with an estimated market capitalization of $250 billion.

Similar to stocks, cryptocurrencies are also on fire. Bitcoin plummeted 6.5% to $35,200 as investors moved away from risky assets. "Investors will see strong sanctions against Russia and this could slow growth, leaving upward pressure on commodity prices," said Dennis DeBusschere of 22V Research.

How long this crisis lasts will determine how it affects inflation, financial conditions and growth, he said. In the short term, a move to safe havens means lower Treasury yields, higher interest rate expectations and a sell-off in risky assets.