Startup Observer.com
  • Home
  • Industries
  • Innovation
  • outsourcing
  • Business
  • Finance
  • Headlines
  • Opinion
  • News
Home Finance European stocks drop as Russia-Ukraine tensions escalate
Finance

European stocks drop as Russia-Ukraine tensions escalate

by jcp February 17, 2022
February 17, 2022
gawdo

By Sruthi Shankar and Shashank Nayar

(Reuters) -European shares fell on Thursday as heightened Russia-Ukraine tensions eclipsed a slew of encouraging earnings from companies such as Kering, Reckitt Benckiser and Commerzbank.

The pan-European STOXX 600 index fell 0.7% with banking and energy shares leading declines as oil prices dropped and benchmark European bond yields slipped for the second consecutive session as investors sought shelter in the safety of bonds.

There was also a fall in yields on the German 10-year government bond, the go-to safe-haven asset in the euro zone.

U.S. President Joe Biden said on Thursday there was now every indication Russia was planning to invade Ukraine, including signs Moscow was carrying out a false flag operation to justify it, after Ukrainian forces and pro-Moscow rebels traded fire. nL1N2US0M8

The Kremlin accused Biden of stoking tension and released a strongly worded letter which accused Washington of ignoring its security demands and threatened unspecified “military-technical measures”. Moscow also ejected the number two official from the U.S. embassy.

“We believe the market is underappreciating the potential risks that are out there,” Elwin de Groot, senior market economist at Rabobank, said.

“If you look at commodity markets in recent weeks, there’s huge volatility and prices increases, especially in the energy complex. That raises the potential for more nasty inflation surprises in the coming months.”

Travel stocks were the top losing European sub-index, down 1.7%, over fears that the potential conflict could derail the recovery of the sector, especially of airline stocks.

France’s CAC 40 slipped 0.3%, the least among its European peers, boosted by a 5% jump in luxury goods maker Kering after it reported sharp growth in quarterly sales on the back of its top Gucci brand. Peer Hermes added 1.1%

Key volatility gauges in markets have jumped in recent weeks as fears grow of a war between Russia and Ukraine. While Moscow has denied it would invade its neighbour, the West has threatened Russia with harsh economic sanctions.

Concerns about surging inflation and rising interest rates have also knocked risk appetite, with traders ramping up bets for aggressive policy tightening from the U.S. Federal Reserve.

However, there has been some respite as 65% of the nearly half of STOXX 600 companies reporting earnings have beaten analysts’ profit estimates, as per Refinitiv data.

Among quarterly earnings, Britain’s Reckitt Benckiser Group rose 5.9% after it beat fourth-quarter sales forecasts.

Commerzbank added 3.2% after the German lender swung to a better-than-expected fourth quarter and painted a rosy outlook for 2022.

Airbus slipped 1.3% after it predicted higher profit and deliveries for 2022 but cautioned that supply chain tensions and a spike in inflation remained challenges for now.

Continental jumped 3.3% after Manager Magazin reported the German auto parts supplier is considering splitting into four separate businesses.

(Reporting by Sruthi Shankar in Bengaluru; Editing by Sherry Jacob-Phillips, Ramakrishnan M. and Andrew Heavens)

www.gawdo.com
Share on FacebookShare on TwitterShare on Linkedin
0 FacebookTwitterPinterestEmail
previous post
Gold jumps, stocks stumble as Ukraine crisis deepens
next post
Bitcoin falls 7.4% to $40,632

You may also like

ALQUITY AND SPOUTING ROCK ASSET MANAGEMENT JOIN FORCES...

May 13, 2022

Griffin submits application for UK banking authorisation, hitting major...

May 13, 2022

Shares drop, yields shoot up after U.S. inflation...

May 11, 2022
Editorial & Advertiser disclosureEditorial & Advertiser disclosureOur website provides you with information, news, press releases, Opinion and advertorials on various financial products and services. This is not to be considered as financial advice and should be considered only for information purposes. We cannot guarantee the accuracy or applicability of any information provided with respect to your individual or personal circumstances. Please seek Professional advice from a qualified professional before making any financial decisions. We link to various third party websites, affiliate sales networks, and may link to our advertising partners websites. Though we are tied up with various advertising and affiliate networks, this does not affect our analysis or opinion. When you view or click on certain links available on our articles, our partners may compensate us for displaying the content to you, or make a purchase or fill a form. This will not incur any additional charges to you. To make things simpler for you to identity or distinguish sponsored articles or links, you may consider all articles or links hosted on our site as a partner endorsed link.
gawdo.com
https://www.gawdo.com
  • About us
  • Advertising & Terms of Use
  • Contact Us
  • Privacy Policy

@2021 - All Right Reserved.


Back To Top
Startup Observer.com
  • Home
  • Industries
  • Innovation
  • outsourcing
  • Business
  • Finance
  • Headlines
  • Opinion
  • News
We use cookies on our website to give you the most relevant experience by remembering your preferences and repeat visits. By clicking “Accept All”, you consent to the use of ALL the cookies. However, you may visit "Cookie Settings" to provide a controlled consent.
Cookie SettingsAccept All
Manage consent

Privacy Overview

This website uses cookies to improve your experience while you navigate through the website. Out of these cookies, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. We also use third-party cookies that help us analyze and understand how you use this website. These cookies will be stored in your browser only with your consent. You also have the option to opt-out of these cookies. But opting out of some of these cookies may have an effect on your browsing experience.
Necessary
Always Enabled
Necessary cookies are absolutely essential for the website to function properly. This category only includes cookies that ensures basic functionalities and security features of the website. These cookies do not store any personal information.
Non-necessary
Any cookies that may not be particularly necessary for the website to function and is used specifically to collect user personal data via analytics, ads, other embedded contents are termed as non-necessary cookies. It is mandatory to procure user consent prior to running these cookies on your website.
SAVE & ACCEPT