Course slide continues after Russian attack

NEW YORK (dpa-AFX) – Russia’s attack on Ukraine kept the US stock markets on their downward slide on Thursday. The Dow Jones Industrial fell after a little more than an hour of trading by 1.89 percent to 32,504.64 points. He is heading for the sixth day of losses in a row. Within a week it has already lost about seven percent because of the conflict, which is now also being conducted militarily. The price gains that he had made since March 2021 have now evaporated.

Stock markets around the world tumbled on Thursday after Russia launched an invasion. There was a slump in Europe in particular. The Dow and its US index colleagues had already lost feathers the day before, so that the losses here on Thursday were somewhat milder than in Europe. The market-wide S&P 500 lost around one and a half percent to 4162.20 points, while the tech-heavy Nasdaq 100 a milder 0.57 percent to 13,432.63 points.

Attacks from different directions were reported by several parties, including Ukraine itself and NATO Secretary General Jens Stoltenberg. “The Russian invasion of Ukraine is a serious geopolitical crisis with far-reaching implications,” said Bank Berenberg analyst Kallum Pickering. It will hurt near-term economic performance, particularly in Europe, and give global investors an additional impetus to reduce risk exposure.

The Russian war against Ukraine is hitting the international stock exchanges with full force these days – and sooner or later the economy too. Important goods could become even more expensive for consumers in Europe, and there were already significant price increases for commodities such as oil on Thursday. On the stock markets worldwide, prices rushed down, many investors fled to investments such as gold and government bonds, which are considered safe in times of crisis.

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Company-specific news only played second fiddle in the face of the market-wide swings. American economic data also faded into the background in view of the war. The US economy grew a little more strongly than previously known in the autumn and, based on the initial jobless claims, the situation on the labor market improved more than expected on a weekly basis.

The market fears that the rise in oil and gas prices in the wake of the Ukraine crisis will further increase international inflationary pressure. Initially, US oil stocks were supported again on Thursday, but over the course of the day they also turned negative after their good run. Chevron shares, for example, lost 0.4 percent of their value as a Dow value.

The international financial sector in particular was affected by the critical situation in Ukraine. In New York, this resulted in JPMorgan shares falling 4.2 percent at the Dow end. The papers of other industry giants such as Citigroup, Bank of America or Wells Fargo also lost more than four percent in value.

On the other hand, the technology stocks, which are mainly gathered on the Nasdaq stock exchange, recovered somewhat from their early losses. The papers from Microsoft, Intel and Salesforce, with their price gains of between 0.6 and 1.7 percent, were the only recent positive Dow values.

Ebay’s shares on the Nasdaq fell by 3.5 percent after the online trading platform had given a disappointing sales outlook for the current quarter. In the final quarter of 2021, the number of active buyers fell surprisingly sharply. In addition, a high quarterly loss was incurred in continuing operations.

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The shares of the travel booking provider Booking Holding came under particularly heavy pressure on the Nasdaq, which collapsed by 12 percent according to its figures. On the market it was said that the fourth quarter was actually okay. However, expert Mario Lu from the British bank Barclays referred to a disappointing margin outlook.

Alibaba’s stocks traded in New York lost almost four percent in value. China’s Amazon competitor reported the slowest sales growth for the past quarter since China’s leadership tightened control of the domestic tech sector. Meanwhile, Chinese Internet stocks listed in New York have been sold off across the board.

Things were looking better at Moderna, the vaccine manufacturer’s papers recovered by almost ten percent from their recent slide to the lowest level since April 2021. The biotech company continues to earn brilliantly from its corona vaccine, as the latest interim report showed. In addition, the Biontech rival slightly raised the sales forecast for its corona vaccine for 2022.

Otherwise, US armaments companies were also discussed as potential beneficiaries of the war situation. However, the reaction of investors in New York among the sector stocks was not unambiguous: although the shares of Lockheed Martin were up moderately by 0.3 percent, those of Raytheon, for example, fell with the market by 2.1 percent.

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