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08 Mar 2022
1 min read

European Markets Quiver

As the Russia-Ukraine war intensifies, investors are wary, especially following the U.S. talks with European countries about banning oil and gas imports from Russia. This would be a decisive development in the crisis that is spilling over far beyond the borders of Eastern Europe. The repercussions could entail a period of slowed economic growth, high unemployment, and rampant inflation across the globe.

Tuesday Markets Shook in Europe

The world is monitoring the situation in Eastern Europe closely and Tuesday morning, the markets reflected the volatile conflict as the pan-European Stoxx 600 dropped more than 0.6% at the open. Then as banks led gains up to 3%, most sectors swung back into positive territory.

After Europe’s benchmark slid 7% last week, marking the worst week since March 2020, European stocks closed lower once again on Monday.

Oil Prices on Upward Trend

Meanwhile, ceasefire talks and negotiations are ongoing between the two parties but have yet to make any tangible progress on the ground. The potential ban on Russian oil and gas is not helping settle the markets, as traders and investors expect an escalation of the war. Moreover, if Moscow decides to cut gas to Europe currently supplied via the Nord Stream 1 pipeline, it would surely send oil prices surging. Initially, when Russia mentioned the possibility, prices reached a 13-year high before giving back most of the gains.

Finally, China is not left out of the rattling in European markets, mainland Chinese markets saw heavy declines, and U.S. stock futures also took a hit after the S&P 500 had its worst daily session since the end of 2020.

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*OspreyFX would like to state that traders should research extensively before following any information given hereby. Any assumptions made in this article are provided solely for entertainment purposes and not for traders to guide or alter their positions. Please read our Terms & Conditions and Risk Disclosure for more information.

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