London, Thursday, 17 February 2022 -
US Markets summary
Following President Joe Biden's warning that military action by the Kremlin was likely, Wall Street's main benchmarks fell dramatically Thursday, as investors struggled with heightened fear over geopolitical tensions between Russia and Ukraine.
The S&P 500 fell more than 2% to 4,380.04, while the Dow Jones Industrial Average fell 623 points (1.8%) to 34,311.18, its lowest level since Nov. 26, 2021.
The Nasdaq Composite Index dropped nearly 2.9 percent to 13,716.72. Oil and bond yields were also impacted by the Russia-Ukraine war.
Crude oil sank 2.15 percent to $91.65 per barrel, while the yield on the 10-year US Treasury note decreased 7.5 basis points to 1.97 percent.
U.S. On Thursday, President Joe Biden stated that the risk of a Russian invasion of Ukraine was "extremely high," and that "every sign [the White House] have is that [Russia] is poised to go into Ukraine."
Markets are prepared for the Federal Reserve to hike interest rates as it seeks to tighten monetary conditions to combat rising inflationary pressures, and the dispute has thrown a new headwind.
Fears that the Kremlin would approve a military attack on its neighbour add to current concerns about central bank policy, which are concerned that military action could worsen inflation and cause other economic problems.
European Markets summary
The main European stock exchanges ended Thursday's session in the red, headed by economically sensitive financials, oil, and industrial businesses, as worries about rising tensions in Ukraine overshadowed a deluge of optimistic reports.
In eastern Ukraine, Russian-backed separatists and Ukrainian military traded allegations of firing across the ceasefire line.
At the same time, the US cautioned that a Russian invasion might happen at any time, and NATO said it had not seen Russia withdraw soldiers from Ukraine's borders.
On the corporate side, Commerzbank surged nearly 3% as the German lender reported a better-than-expected fourth-quarter net profit.
U.S. Stock Market Indexes as at 4:00 p.m. ET
S&P 500: -94.75 points, or 2.12%, to 4,380.26
Nasdaq: -407.38 points, or 2.88%, to 13,716.72
Dow Jones: -622.24 points, or 1.78%, to 34,312.03
European Stock Market Indexes
STOXX Europe 600: −3.22 (0.69%) at 464.55 as on Feb 17, 6:00 PM GMT+1
FTSE 100 in London: −66.41 (0.87%) at 7,537.37 as on Feb 17, 4:35 PM GMT
DAX 30 in Germany: −102.67 (0.67%) at 15,267.63 as on Feb 17, 5:55 PM GMT+1
CAC 40 in France: −18.16 (0.26%) at 6,946.82 as on Feb 17, 6:05 PM GMT+1
FTSE MIB 30 in Italy: −300.05 (1.11%) at 26,669.27 as on Feb 17, 5:35 PM GMT+1
IBEX 35 in Spain: −66.10 (0.76%) at 8,671.10 as on Feb 17, 5:38 PM GMT+1
Ten-year U.S. Treasury note: -7.5 bps to yield 1.9720%
Dollar index: +0.10 or +0.11% at 95.81
VIX volatility index: +3.82 (15.73%) at 28.11 as on Feb 17, 3:15 PM CST
Brent crude: -0.03 or -0.03% at $ 92.94 per barrel as on Feb 17, 2022 10:59 p.m. GMT
West Texas Intermediate: -0.26 or -0.28% at $ 91.47 per barrel as on Feb 17, 2022 at 7:14 p.m. EST
Gold: +32.05 or +1.71% at $ 1,901.98 an ounce as on Feb. 17 at 19:25 NY Time
Silver: +0.31 or +1.31% at $ 23.86 an ounce as on Feb. 17 at 19:26 NY Time
Bitcoin: −29.20 (0.07%) at $ 40,509.10 as on Feb 18, 12:25 AM UTC
Ethereum: −18.30 (0.63%) at $ 2,875.26 as on Feb 18, 12:24 AM UTC
(Written and edited by: The Decision Maker)