Paris (awp / afp) – Tensions over Ukraine continued to weigh on the markets on Thursday, with the tone rising between the United States and Russia.
The American markets were moving in the red during the first exchanges, with -1.22% for the Dow Jones, -1.28% on the S&P 500 and -1.41% on the Nasdaq index, with a strong technological composition around 2:55 p.m. GMT.
The European markets were in the same trend: Paris yielded 0.70%, Frankfurt 0.42% London 0.92% and Milan 0.72%. In Zurich, the SMI had accentuated its losses and dropped 1.20%.
“Tensions will persist until we see a confirmed and substantial troop reduction on the Ukrainian border,” wrote Oanda analyst Craig Erlam.
An outbreak of violence between Ukrainian and pro-Russian separatist forces, embroiled in a dispute since 2014, fueled Western concerns on Thursday of a Russian offensive against Ukraine, even as Moscow assures that its forces are returning to their barracks.
The risk of an invasion of Ukraine by Russia is “very high”, US President Joe Biden reiterated Thursday before leaving the White House.
Russia has also “expelled” the number two from the United States Embassy in Moscow, Bart Gorman, the US State Department announced on Thursday, denouncing an “escalation”.
Moscow has also threatened to react, including militarily, if the United States rejects its main security demands, repeating, in its response to American proposals on talks on European security, wanting a withdrawal of American forces from Central and Eastern Europe and the Baltic States.
President Vladimir Putin had spoken on Tuesday of a “partial withdrawal”, without detailing its extent or its timetable, a glimmer of hope which had then reassured the markets.
The renewed tensions prompted investors on Thursday to favor safe havens such as gold or government bonds, a reflex reflecting risk aversion.
An ounce of gold gained 1.26% and traded at 1,893.46 dollars, its highest since June.
On inflation, a major topic that has preoccupied the markets for months, the report of the monetary policy committee of the American Central Bank was without surprise on Wednesday, confirming that the Fed could raise its key rates at a faster pace than during the previous economic recovery (after 2015), to fight against inflation.
Supporting business results ___
The markets, on the other hand, were supported by solid corporate results. In Paris, the Kering share arrogated 6.10% to 671.10 euros after the luxury group’s announcement of “excellent performance in 2021”, beating forecasts.
The energy company RWE rose 4.66% to 36.60 euros after raising its forecasts for the 2022 financial year and Commerzbank (+3.05% to 8.84 euros) was also in the spotlight in Germany.
In London, the British hygiene and health products group Reckitt Benckiser soared 5.10% to 6,103 pence after publishing better-than-expected annual results.
In the United States, the distribution giant Walmart (+2.16% to 136.29 dollars) also surprised positively. Carrefour (+5.18% to 18.08 euros) did the same in France.
Pullback in oil, euro and bitcoin ___
Oil prices were down, experiencing another sharp move in a volatile week, influenced by conflicting reports about the crisis in Ukraine and the possible conclusion of an Iranian nuclear deal.
Around 2:35 p.m. GMT, the price of a barrel of Brent from the North Sea for delivery in April lost 2.08% to 92.81 dollars.
In New York, a barrel of West Texas Intermediate (WTI) for delivery in March fell 2.04% to 91.93 dollars.
The euro lost some ground (-0.11%) against the greenback, at 1.1357 dollars.
Bitcoin lost 4.59% to $42,060.
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