European stock exchanges sink, overwhelmed by the war in Ukraine. The European markets are sinking into a nightmare whose possible developments are not yet visible. But, after a month of clinging to every possible positive news, traders are now convinced that the most likely scenario is the worst. And they are adapting: more than bad news, in short, the uncertainty on developments weighs.
La Milan Stock Exchange, down 5,1% at the end of the morning, accelerated the descent below 25 thousand (24.632 points) in line with the other European lists. Same reaction for i US futures, which anticipate a deep red start for Wall Street markets. There Moscow Stock Exchange, yesterday closed, today it reopened its doors for a few minutes: but after losing more than 50%, trading has been suspended. At the City of London the shares of the giant Gazprom lost 40%.
The Stock Exchange sinks, leap of the comforts
The most immediate effects, pending the sanctions that will isolate the Russian economy, are felt in the raw materials sector:
- Oil broke the threshold of 100 dollars a barrel, reaching 105.
- Gas prices are flying: on the TTF – the Rotterdam market, it is traded at 114 euros per megawatt with a jump of 30%.
- The prices of cereals and the cost of grain, of which Kiev is one of the main producing and exporting countries, rose by 5,90%. But soy (+2,87%), corn (+5,47%) and oats (+4,81%) also increased.
- The quotations of thealuminum surpassed the 2008 peak and approached the $3.400 a ton mark to $3.388 a ton, up 4,6%.
- THEgold rockets to 1.970 an ounce. Silver also rose above 25 dollars an ounce (+2%) and platinum at 1.105 dollars (+1%).
In Milan, Eni and Saipem are the only ones on the rise
In a market for high volatility Two plus signs in tow of oil also pop up: Eni +0,39%, preceded by Cinderella Saipem +0,50% which he anticipated the 2021 accounts. In the fourth quarter, the operating loss amounted to 1,04 billion euros, almost one hundred million more than expected
The big banks are under fire. Unicredit –11,8%. At the end of 2021, the bank had outstanding loans to Russia for 7,8 billion. The group's Moscow subsidiary accounted for approximately 4% of operating profit.
The drop in was also heavy Intesa Sanpaolo -8,6% exhibited in Moscow for 5,5 billion.
The two banks have no significant exposure to Russian government bonds.
But it is also among the major declines Pirelli, which he also released on Wednesday evening results above expectations. The Bicocca company pays for its presence on the Moscow market with a drop of 9,9% to 5,11 euros. The company said it expects 2022 to grow but be characterized by a volatile scenario. S&P has assigned a BBB- long-term issuer credit rating with a stable outlook.
Also in sharp decline Buzzi, strongly committed to Russia, which loses 8.5%. Maire Tecnimont -6,4% (-18% at the opening) and Danieli -6,3% also fell.
