The US leading index Dow Jones was 0.91 percent lower at 32,830.33 points at the starting bell, but then slipped more clearly into the loss zone in the next few seconds. It is currently down 1.42 percent to 32,647.26 units. The tech index NASDAQ Composite fell 3.49 percent to 12,587.88 points at the opening. The mood is changing here: the plus is currently 0.38 percent to 13,087.48 points.
In the wake of the Russian invasion, the government in Kiev imposed martial law and closed airspace to civilian aircraft. In the meantime, Ukraine has also severed diplomatic relations with Moscow. In the West, the invasion was sharply condemned as a breach of international law. It remains to be seen what further sanctions will now be imposed in response. US President Joe Biden has sharply condemned the Russian military attack on Ukraine and threatened the government in Moscow with consequences.
Cautious is now capitalized on the market
“What seemed unbelievable to most investors has actually happened,” says Slava Smolyaninov, chief strategist at BCS Global Markets in Moscow. “It’s a total change of everything; we’re in a different world now.” Investors are likely to remain cautious for a while longer, notes Mari Iwashita, economist at Daiwa Securities, citing Russia’s 2014 annexation of Crimea become a reality as inflation data from the US and Europe should show the impact of February’s oil price hikes,” she adds.
US central banker only advocates cautious interest rate hikes because of the Ukraine war
In view of the war in Ukraine, a high-ranking central banker from the USA has spoken out in favor of a rather cautious start to the US Federal Reserve’s tightening of monetary policy. There is great uncertainty because of the corona pandemic and because of the “tragic events” in eastern Ukraine, said the president of the regional central bank of Philadelphia, Patrick Harker, on a US radio station on Thursday. The Federal Reserve should not add more uncertainty, suggesting a 0.25 percentage point rate hike in March.
Editorial office finanzen.net / Dow Jones Newswires
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