Shrapnel from the Russian-Ukrainian war hit the stock markets (AFP)
I backtracked Asian financial markets And futures contracts on European shares, yesterday, Wednesday, on the impact of a missile that fell inside the Polish borders, which raised fears of an escalation The war in Ukraine.
The market decline came despite Poland saying there was “no indication” that the missile that killed two people was a deliberate attack and that Ukraine may have fired a Soviet-era shell while fending off a Russian missile. NATO Secretary General Jens Stoltenberg also agreed with this assessment at a meeting of the military alliance in Brussels.
However, stocks in Hong Kong, Australia and South Korea, as well as futures contracts for US and European stocks, declined due to huge price volatility.
Positive sentiment in markets, caused by expectations of a slowdown in interest rate hikes by US Federal Reserve-led central banks, faded as traders in Asia turned their attention to geopolitical risks, according to Bloomberg.
“After a strong recovery in US equities and Chinese stock markets, I think it makes sense to make some corrections,” said Grace Tam, chief investment advisor for Hong Kong at French bank BNP Paribas. This could be the trigger for the correction. The sentiment has become a little more risk averse.”
Australia’s “ASX 200” index fell 0.4%, Hong Kong’s “Hang Seng” index fell 1.1%, the Shanghai Composite index fell 0.2% and futures contracts for the European index “Stoxx 50” they fell by 0.9%. .
In contrast to fears about fragments of the Russian-Ukrainian war, European markets were affected in the third quarter of this year by the slowdown in the economies of the countries of the Eastern European Union, as consumers were affected by the increase energy costs resulting from war and rising interest rates. Eastern European countries, in particular, suffer from inflation above 10%, which has forced central banks to implement a series of rapid interest rate hikes.
