Shares are shaking in the potential Ukraine conflict

  • Euro STOXX 600 1.3% lower
  • Technology stocks fell to a new 14-week low
  • Oil is up, and bitcoin is down 50% from November
  • Potential Russian attack on Ukraine catches investors
  • The dollar index rose 0.1%

LONDON / SYDNEY, Jan 24 (Reuters) – Shares around the world fell on Monday as the prospect of a Russian attack on Ukraine eased demand for the dollar, which raises the dollar and crushes oil and bitcoin.

The U.S. State Department said Sunday that family members of diplomats have been ordered to leave Ukraine, and that one of the clearest indications is that US officials are ready for Russian occupation of the region. read more

U.S. President Joe Biden has weighed in on options to increase US military assets in the region to counter Russian troop deployments, with the New York Times looking to send 1,000 to 5,000 troops to Eastern Europe, the New York Times reported. read more

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Euro STOXX 600 (.STOXX) Dec. 1.3% down after 20, with indices in London (.FTSE), Paris (.fchi) And Frankfurt (.GDAXI) Low between 0.8% and 1.5%.

Technology stocks (.SX8P) After the Wall Street crash last week due to the possibility of rising interest rates, it has led to losses of 2.3% since October.

Analysts noted that there was reluctance among investors to re-invest in stocks that were rarely seen in the era of post-2008 low interest rates and increased liquidity by the central bank.

“Ukraine is really on the mind at the moment,” said Michael Hewson, chief market analyst at CMC Markets. “In the last 12 years, buying the mood of investors in general has been the mood of investors. This is the first time in the last 12 years that I have realized that this is not the norm.”

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Wide index of MSCI of Asia-Pacific equities outside Japan (.MIAPJ0000PUS) Japan’s Nikkei fell 0.7% (.N225) Reduced by 0.1%.

However, after last week’s fall on Wall Street, both the S&P 500 futures and the Nasdaq futures are up about 0.3%.

MSCI Global Equity Code (.MIWD00000PUS)Shares in 50 countries traded down 0.3%.

Oil prices rose again, reaching a seven-year high for five consecutive weeks on expectations that demand would remain strong and limits lower.

Bitcoin fell 5% to $ 34,551 in trading on Monday, not far from the six-month low of $ 34,000 on Saturday. The cryptocurrency has lost almost half its value since hitting an all-time high of $ 69,000 in November.

Fed nerves

Nerves at the central bank meeting on Wednesday added to the mix. The US Federal Reserve is expected to confirm that it will soon begin to expel a massive pool of cash that has exaggerated growth stocks in recent years.

Interested markets are now raising the Fed this week even on a small opportunity, although the biggest expectation is for 0.25% in March and a further three to 1.0% by the end of the year.

Oliver Allen, a market economist at Capital Economics, said:

Higher borrowing costs and attractive bond returns have hit US tech stocks with their high ratings, with the Nasdaq down 12% and the S&P 500 down nearly 8% so far this year.

Based on the burning speculation of market wealth, this is the amount of losses that the treasuries have actually accumulated over the past weekend, which may scare the central bank to be low hawks.

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Although treasuries rallied late last week, the 10-year yield is still up 22 basis points at 1.77% per month and is not far from the last level seen in early 2020.

The rise was generally supported by the US dollar, which added 0.5% to a basket of currencies last week, rising 0.1% to 85.647.

“We suspect the dollar could gain broad support,” MUFG analysts wrote. Wednesday’s meeting “is likely to see the central bank show greater concern about the risks of inflation and commitment to reverse the devaluation quickly and continue to falter.”

Brent was up 83 cents at $ 88.72 a barrel, while U.S. crude was up 77 cents at $ 85.91.

Analysts cited supply disruptions as tensions escalated in Eastern Europe as OPEC and its allies continue to struggle to boost production.

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Report by Tom Wilson in London and Wayne Cole in Sydney; Editing by Sam Holmes, Edwina Gibbs and Tomas Janowski

Our standards: Thomson Reuters Trust Principles.

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