Get out, get out, get out – at times today on this memorable February 24, panic reigned on Europe's stock exchanges. The DAX crashed down by up to 5.6 percent. In the afternoon the losses reduced somewhat. The German stock exchange barometer closed around four percent lower at just over 14,000 points.
Record crash on the Russian stock exchange
The stock exchanges in Paris and London recorded similarly high losses. The leading European index EuroStoxx50 fell by 3.6 percent. The stock market crashed in Moscow: the leading index RTS experienced a record fall of a good 40 percent. It fell to its lowest level in six years. The Russian ruble fell to a record low.
Negative consequences for Europe's economy
Investors fear that the Ukraine conflict could choke off the expected economic recovery in Europe. "The Russian invasion of Ukraine is a serious geopolitical crisis with far-reaching implications," said Bank Berenberg analyst Kallum Pickering. It will hurt near-term economic performance, particularly in Europe, and give global investors an additional impetus to reduce risk exposure.
"What matters is how long the military operation lasts, how far Russian troops advance into Ukraine and what reactions come from the West and from China," said investment strategist Carsten Mumm from private bank Donner & Reuschel. Risk stocks and bank stocks in particular were avoided today.
Wall Street turns the tide
Is the turnaround in interest rates now delayed?
Some investors are now speculating that the Ukraine war could delay the central banks' tightening monetary policy again. The Fed had actually expected its first rate hike in March. The European Central Bank (ECB) also gave initial indications of an imminent turnaround in interest rates. "The war shock that has hit Europe is clouding the global outlook," ECB Director Isabel Schnabel warned today at an event organized by the British central bank. The ECB is keeping a close eye on the situation and will carefully examine what consequences this has for its monetary policy.
Oil price at times above 100 dollars
Many raw materials more expensive than ever
Aluminum, which is used primarily in the auto and aircraft industries, cost as much as $3,449 a ton. The price of tin used in food cans, of which Russia is one of the top exporters, also climbed to a record $45,410 a ton. "As a result of the sanctions, Russia will not be able or willing to sell its commodities to the West," warned analyst Ricardo Evangelista of brokerage house ActivTrades. "This will exacerbate the current supply bottlenecks."
The European wheat future also rose to a record high of EUR 344 per ton. According to experts, Ukraine accounts for a quarter of global agricultural trade.
Is there a risk of even higher inflation now?
Experts do not rule out that Russia will react to the West's harsh economic sanctions by stopping gas supplies and thus fueling the price spiral. The German Economic Institute (IW) predicts that the inflation rate could climb to over six percent this year. "As unpredictable as the political escalation and situation is, the conceivable global economic effects are now tangible," commented Thomas Böckelmann from Euroswitch asset management on the development on the raw materials markets.
Escape to Gold
euros under 1.12 dollars
Telekom on course for growth
VW pushes Porsche IPO
Porsche SE, through which the Porsche and Piech families hold a majority stake in Volkswagen, will subscribe to 25 percent plus one share of the ordinary shares. The holding company is to purchase the shares at the price of preferred shares plus a premium of 7.5 percent. The Emirate of Qatar, which holds a 14.6 percent stake in VW, also wants to acquire a stake in the preferred shares of Porsche AG. The voting ordinary shares are not to be listed on the stock exchange.
Mercedes raises dividend sharply
SAP distributes anniversary bonus
HeidelbergCement optimistic about the future
Will Siemens Energy swallow the wind subsidiary Gamesa entirely?
Bank stocks on sale
Armaments stocks high
Defense stocks have been very popular since Tuesday. Since then, Rheinmetall's shares have climbed by a good eight percent, and Hensoldt by more than 13 percent.