As I mentioned in the post prior to this one, stocks took a fall after the sanction news and it’s something that could start to escalate. At the moment the sanctions are targeted but there will be many European companies that feel some pinch. Aas lilac points out, if it moves into tit-for-tat territory with Russia then stocks could take a hammering. It’s hard enough for European companies as it is at the moment without having EU bigwigs potentially pulling the rug out from under them.
The FTSE has finished up 0.3% but took around a 25 tick fall on the sanctions news. The DAX finished +0.6% but again lost about 60 on the news. The CAC is up 0.4%, Ibex +0.1% and FTSE Mib +0.7%
European 10 year bond yields are off around 3 basis points across the normal suspects.
- Spain 2.47%
- Italy 2.64%
- Portugal 3.58% (+1)
- germany 1.12%