Russia Sanction Concern – Stocks Under Tension
UK stocks fell on Tuesday. Investors assessed the prospect of more sanctions against Russia. At the same time, defensive brokerage calls hit blue-chip stocks like Lloyds and Vodafone. Export-oriented FTSE 100 fell 0.1%. The FTSE 250 Index of Domestic Focused Average was down 0.2%.
Global miners Rio Tinto and Anglo American fell more than 1%. The broader industrial mining index dropped 1.4%—the highest rate in more than a decade since the previous session. Homebuilders lost 1.6%. While overall markets were cautious, the oil and gas index rose 0.5%. The price of crude oil increased to $110. US and European plans will impose new sanctions on Barrel to punish Moscow for killing civilians in Ukraine.
The FTSE 100 ended the first quarter with increases. It was better than its European and American counterparts. Commodity prices have boosted the shares of major mining and oil companies. Banks have gained the prospect of raising interest rates. However, the index has stalled recently as investors continue to worry about the consequences of the Ukraine war due to the rapid rise in inflation and interest rates.
Vodafone fell 1.3%, and Berenberg downgraded its stock rating to “hold” before buying. Lloyds Banking Group fell 0.6% after Barclays downgraded. Darktrace has fallen 7.1% since J.P. Morgan began coverage with a “low weight” rating according to the Medium Capital Index. Go-Ahead added 6.2% after announcing it was restoring its previous COVID policy of paying dividends to shareholders from 2022.
Stocks and War Influence
The STOXX 600 index increased 0.3% due to rising oil, industrial, technological, and insurance stocks. The euro retreated part of its 1.8% loss against the dollar in recent days. Investors were waiting for a new batch of sanctions. According to the French Minister of European Affairs, oil grew by 1%. This raised the benchmark earnings of the German Bund and US Treasury bonds due to the high outlook for global inflation.
According to the CRUX Asset Management Foundation manager, the global economy’s path now largely depends on how the war in Ukraine progresses and how policymakers deal with relevant economic challenges in the US and China.
MSCI’s broadest Asia-Pacific stock index outside Japan rose 0.3% in Asia. The markets of China and Hong Kong were closed for the holidays. However, this was the strongest level since Russia sent its troops to Ukraine on 24 February. The Nikkei closed at 2%. The S&P/ASX 200 index gain 0.2% in Australia. South Korean shares increased by 0.1%.