- Global stocks under pressure after US defense reports
- US announced further sanctions on Russia
- Commodities prices soar, wheat price highest since 2011
- Cryptocurrencies move higher despite risk off sentiment
- Tesla (TSLA.US) fell below crucial support
European indexes erased early gains and finished today's session mostly lower, with DAX losing 0.4% and reaching an 11-month low. Market sentiment turned sour after the US warned Ukraine about the possibility of a full-fledged invasion, which could begin within the next 48 hours. US defense revealed that Russian forces around Ukraine are as ready as they can be. The gloomy sentiments were additionally affected by cyber-attacks targeting Ukraine's IT infrastructure and banks. Ukraine has decided to introduce a state of emergency in the main districts for the next 30 days. Meanwhile, Moscow has begun to evacuate the staff from its Kyiv embassy. On the data front, Germany’s GfK consumer confidence gauge took an unexpected downturn heading into March.
Major Wall Street indices also took a hit on Wednesday as market volatility returned, amid fresh concerns over the crisis in Ukraine. Washington decided to take further action against Nord Stream 2 AG and its corporate officers. Several other countries are expected to announce additional sanctions on Russia as well. The Dow Jones fell over 0.70% after adding more than 200 points at the open and the S&P 500 fell 1.0%, moving deeper into correction territory. The Nasdaq dropped 1.4% hitting a 37-week low. Tesla (TSLA.US) stock fell nearly 5.0% below major support at $788.00 and reached its lowest since October 2021.
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Create account Try a demo Download mobile app Download mobile appCommodity prices benefit from the uncertainty related to the escalation of tensions in the East. Gold rose 0.5% and tested $ 1,910 level amid a weaker US dollar. However, silver, wheat and soybeans are among the top performers, gaining 1.7%, 4.1% and 2.5% respectively. Wheat and soybean prices reached their highest levels in almost a decade during today's session. Geopolitical uncertainty, increasing demand and shortages in major transshipment ports are driving the prices of these two agricultural commodities.
Although the cryptocurrency market is considered the most risky, today the main projects do not correlate with the stock market. Bitcoin trades flat, while Ethereum rose nearly 2%. Cardano is doing particularly well and is now up 5.5%.
Silver price rose over 11% since the beginning of February as precious metals in general tend to perform well during times of geopolitical turmoil. Today silver also recorded strong gains and if current sentiment prevails upward move may accelerate towards major resistance at $24.80, which coincides with 38.2% Fibonacci retracement and upper limit of the ascending channel. Source: xStation5
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