Wall Street Sell-Off on Tuesday, Europe Ends Mixed.
London, Tuesday, 22 February 2022 -
US Markets summary
On Tuesday, all three main US markets fell as risk appetite was dampened by tensions between Russia and Ukraine.
President Putin sent troops into two Moscow-backed separatist regions in eastern Ukraine yesterday after announcing his recognition of their independence, prompting Western nations to impose sanctions.
Today, US Vice President Joe Biden stated that he believes Russia's invasion of Ukraine is just getting started, and that the US will impose sanctions on Russian financial firms, sovereign debt, and individuals.
Biden also stated that if Russia's hostility continues, penalties will be increased.
On the economic front, preliminary estimates reveal that the IHS Markit US Manufacturing PMI increased to 57.5 in February 2022 from 55.5 in January, exceeding projections of 56.
The Dow Jones Industrial Average dropped 483 points to 33,597, the S&P 500 dropped 1% to 4,305 and entered a technical correction, and the Nasdaq Composite dropped 1.2 percent to 13,382.
European Markets summary
The benchmark DAX 30 fell for the fifth day in a row to its lowest closing level since March 2021, as European markets completed a roller-coaster afternoon largely down.
Concerns about increasing tensions in Europe weighed heavily on global markets.
After announcing that he would recognize the independence of two Moscow-backed separatist areas in eastern Ukraine, President Vladimir Putin sent troops into the region, triggering penalties from Western nations.
In terms of data, Germany's Ifo Business Climate indicator rose to 98.9 in February 2022, the highest level in five months, outperforming the market's projection of 96.5.
U.S. Stock Market Indexes as at 4:00 p.m. ET
S&P 500: -44.21 (-1.02%) to 4,304.66
Nasdaq: -166.55 (-1.23%) to 13,381.52
Dow Jones: -482.05 (-1.41%) to 33,597.13
European Stock Market Indexes
STOXX Europe 600: +0.31 points, or 0.07%, closing flat at 455.12.
FTSE 100 in London: +9.88 points, or 0.13%, closing at 7,494
DAX 30 in Germany: the worst performer, down 38 points, or 0.26%, to close at 14,693
CAC 40 in France: remained flat to end at 6,787
FTSE MIB 30 in Italy: -6 points, or 0.02%, to finish at 26,043
IBEX 35 in Spain: +4.3 points, or 0.05%, to finish at 8,493
Ten-year U.S. Treasury note: +1.6 bps to yield 1.9480%
Dollar index: -0.01 or -0.01% at 96.07
VIX volatility index: +1.06 (3.82%) at 28.81 as on Feb 22, 3:15 PM CST
Brent crude: -0.34 or -0.35% at $ 96.50 as on Feb 22, 2022 10:58 p.m. GMT
West Texas Intermediate: +1.20 or + 1.32% at $ 92.27 as on Feb 22, 2022 2:29 p.m. EST
Gold: +0.28 or +0.01% at $ 1,899.46 an ounce as on Feb 22, 18:12 NY Time
Silver +0.23 or +0.97% at $ 24.15 an ounce as on Feb 22, 18:12 NY Time
Bitcoin: +1,027.00 (2.77%) at $ 38,050.00 as on Feb 22, 11:14 PM UTC
Ethereum: +56.72 (2.21%) at $ 2,626.79 as on Feb 22, 11:20 PM UTC
(Written and edited by: The Decision Maker)