December 5, 2022

Ukraine fears escalate, Federal Reserve comments in focus

Ukraine fears escalate, Federal Reserve comments in focus

LONDON – European markets fell sharply on Monday as investors continued their hunt Tensions in Ukraine And statements by Federal Reserve officials about interest rate expectations.

pan europe Stokes 600 It was down 2.7% by mid-morning, with banks down 4.1% to lead losses as all major sectors and exchanges slid into negative territory.

Several countries have urged their citizens to leave Ukraine amid fears of an imminent Russian invasion, with National Security Adviser to US President Joe Biden Jake Sullivan He warned Sunday that the Kremlin has accelerated its extraordinary military build-up along the country’s borders over the past 10 days.

Western leaders have threatened severe sanctions against Russia in the event of any incursion into Ukraine, as leaders continue to seek diplomatic solutions. The Kremlin denied any intention to invade its neighbor and accused Washington of stoking “hysteria”.

Russian assets also fell on Monday morning, with MOEX Russia The index fell 3.4% and the RTS index 4.9%. The US dollar rose 0.2% against Russian ruble.

Global markets have been in turmoil since a A sudden rise in inflation rates in the United States Last week, which prompted St. Louis Federal Reserve Chairman James Bullard to call For a full percentage point of interest rate hikes before July.

However, fellow rater and “San Francisco Federal Reserve Bank President Mary Daly said on Sunday That the central bank should gauge its way to tighten monetary policy, noting that “sudden and violent action can have a destabilizing effect” on growth and price stability.

Stock Picks and Investment Trends from CNBC Pro:

Dividends continue to drive individual stock price action in Europe, with capgeminiAnd Michelin And horse Among those who sounded before the bell on Monday.

Swiss chemical company clarinet It fell more than 17% in early trading after a 2021 earnings report was delayed amid an investigation into whistleblower allegations of accounting practices.

At the top of the index of European major companies, the steel and mining company secretion It rose more than 14%, leading only a handful of stocks into positive territory.

Commerzbank Shares fell 5.5 percent after German Finance Minister Christian Lindner told the Handelsblatt newspaper that the government would give up its stake in the bank in the long term.

Stocks in Asia Pacific It slipped on Monday, with Japan leading losses as investors assessed both tensions in Ukraine and the worsening Covid-19 situation in Hong Kong. US stock futures It also fell early in the pre-market trade.

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