Financial Impact of the Escalating Tension in Ukraine

New York Stock Exchange

In the United States, there was a “sharp drop at the beginning,” but a slight recovery later, not enough to prevent the New York Stock Exchange from ending the day with a drop of over 1%.

Tokyo and Hong Kong Stock Exchanges

According to the Financial Times, the Tokyo index “opened high,” but ended the day in decline.

In Hong Kong, the drop in stock values also reflects a “sharp decline.”

Moscow Stock Exchange

On the main index of the Moscow Stock Exchange, “50 of the largest companies in Russia” have been declining for the past two days. However, the values have already been decreasing since October and November.

At that time, they were at their peak, valued at 4,250, but now they are at 3,084.74, corresponding to a decrease of 27.5%, which is what markets often refer to as ‘pricing in the discount.’

This is also a reflection of international sanctions on the Russian economy.

Frankfurt and London Stock Exchanges

In Europe, there is a “mixed behavior”: having initially shown a significant drop, stock values reached a “gradual recovery.”

However, the German and British stock exchanges show a “clearly losing behavior”: Berlin ended at zero, and London showed negative results.

Oil Barrel Price

Regarding the price of a barrel of oil, “since December, there has been a brutal escalation,” now reaching values above $96 per barrel. José Gomes Ferreira explains that these values are expected to remain, “penalizing international business and Portugal.”

This is an “extremely important data for the next State Budget.” With the approval of the previously rejected 2022 budget, it will be necessary to account for the correction of these values, which “will harm the Portuguese, European, and global economy.”

Key Takeaways:

• The escalating tensions in Ukraine have had a significant financial impact globally.
• Stock exchanges in Moscow, Tokyo, Hong Kong, Frankfurt, London, and New York have experienced declines.
• The price of oil has surged, impacting international businesses and economic stability.

Conclusion

It is crucial for policymakers and investors to closely monitor these developments and adjust their strategies accordingly. The economic ripple effects of geopolitical tensions can be far-reaching, affecting markets and economies worldwide.