Financial markets LIVE: UK panic over Ukraine war and US interest rates – shares plummet

‘Brutal’ start to the week for stock markets

Chief market analyst, Chris Beauchamp said it has been a “brutal start to the week” for stock markets. 

On Monday the Europe-wide STOXX 600 index fell 3.8 percent, marking its worst day since June 2020.

Mr Beauchamp added: “Investors would have spent the weekend reading of troop build-ups around Ukraine and the growing tensions between Russia and the West, providing yet another reason to either sell stocks or sit on the sidelines.”

Europe’s travel & leisure stocks and rate-sensitive technology shares were the hardest hit, each falling more than 5 percent.

Tech stocks closed at their lowest level since June 2021.

Bitcoin slumps to six month low

Bitcoin has also tumbled to its lowest level in six months amid fears of a Russian attack on Ukraine. 

The largest cryptocurrency was last down 5.4 percent at $34,310 after earlier dropping to $32,951, its lowest price since July 23, taking losses from its all-time high of $69,000 hit in November past 50 percent.

More than $400 million in crypto assets has been liquidated in the past 24 hours, according to data from Coinglass,  with Bitcoin trades accounting for $141 million of that total.

Mark Elenowitz, president of Horizon, a firm that services securities exchanges said: “Bitcoin will face headwinds going back up until the macroeconomic conditions change.

“Generally speaking, when rates are hiked, we could see more sell-offs of seemingly risk-on assets like bitcoin.”

FTSE closes at worst level since November

The Financial Times Stock Exchange (FTSE) has closed at its lowest level for a month. 

The index ended Monday down 1.6 percent, or 197 points at 7297. 

The worst slump since the end of November.

FTSE Mid-250 index also ended the day falling to 810.74, its worst day since September 2020.

Wall Street falls further

Wall Street continues to fall as Nasdaq Composite falls 3.84 percent and Dow Industrials 2.53 percent. 

S&P 500, or Standard and Poor’s 500 index stumbled over 4 percent. 

‘Ukraine is really front of mind’, says market analyst

Chief market analyst at CMC Markets Michael Hewson said “Ukraine at the moment is really front of mind”. 

Analysts noted a reluctance among investors to pile back into equities that has rarely been seen in the post-2008 era of ultra-low interest rates and central bank-boosted liquidity.

Mr Hewson said: “Over the last 12 years, buy-the-dip is the mentality for investors generally.

“This the first time in the last 12 years, I’ve felt, that’s not the default position to be in.”

Good afternoon

Good afternoon I’m Francesca Edwards, I’ll be bringing you all the latest developments on financial markets.

Please feel free to get in touch with me as I work if you have a story or tips to share! Your thoughts are always welcome.

Email: francesca.edwards@reachplc.com

Twitter: @FrankieLEdwards

Harry Byrne

Related post