European Stock rose; Investors Digest Latest Sanctions
European stock markets might open higher on Friday, helped by the strong reversal on Wall Street overnight. It might result from investors digesting the potential long-term effect of the new sanctions on Russia after invading Ukraine. Those sanctions come from the U.S. and its allies.
At 3 AM ET (0700 GMT), the DAX futures in Germany traded 0.2% higher. CAC 40 futures in France rose 1.65%, and the FTSE 100 futures contract in the U.K. increased 1.2%.
On Thursday, European equity markets closed lower, with the DAX, FTSE 100, and CAC 40 falling almost 5%. It resulted from Russian President Vladimir Putin authorizing an invasion of its southern neighbor. It was sending tanks, troops, and missiles to Ukraine.
Overview of the sanctions on Russia and stocks
Biden released sanctions along with his G-7 allies, targeting Russia’s capability to do business in the world’s major currencies, with measures against banks and state-owned companies.
The new measures stopped disconnecting Russia from the SWIFT international banking system. It was targeting its oil and gas exports, actions which could have had severe effects on Western economies just as they are recovering from the Covid-19 pandemic.
Any rallies could be short-term, with Russia’s military activity in Ukraine carrying enormous risks for a world economy.
An analyst at IG Markets, Kyle Rodda, talked about the recent activities in the world. Rodda said this conflict would be a prolonged issue and add to global inflationary strains that will keep major banks on track for tightening.
The earnings season continues in Europe, with German BASF likely to be in the spotlight after it forecast a drop in operating earnings. Its supply chain remains vulnerable to disruptions.
The post European Stock rose; Investors Digest Latest Sanctions appeared first on forexinsider24.com.
