Galp stopped buying oil from the Russians. Ambassador calls for sanctions, UN condemns Putin – invasion of Ukraine

Stoxx 600 is headed for the worst quarter since the start of the pandemic. Moscow is closed

Europe started the session in the red, after it was mixed in the meantime, as investors were pressured by the latest developments in the Russian invasion of Ukraine and the rise in the prices of raw materials, which was mainly reflected in the price of oil, which rose on Wednesday by 6%, exceeding the threshold of 110 bucks.

The Stoxx 600 Index – the perfect benchmark for Europe – fell 0.2% to 442.28 points. Of the 20 sectors that make up the index, seven have opened in green and the rest are in red.

The “Oil and Gas” sector was the highest gainer, increasing by 2.11%, followed by the Technology sector, which rose by 1.94%. In terms of losses, the automotive sector lost the most (-1.50%) followed by the food commodities sector (-1.46%).

The European benchmark is on track for its worst quarter since the start of the pandemic, according to data compiled by Bloomberg.

In the remaining European markets, Spain’s IBEX is down 0.02%, Germany’s DAX is down 0.58% and France’s CAC 40 is down 0.47%, while Milan is down 0.35%. On the other hand, London rose by 0.63%, followed by Amsterdam (-0.62%). It is Lisbon Square that records the most telling increase, having recently been estimated at more than 1%, driven by the energy sector.

Barclays warns in a research note prepared by Bloomberg that “high commodity prices increase the risks of stagflation, and exacerbate the dilemma for central banks.”

However, analysts led by Emmanuel Kao stress that “as a general rule, market dips driven by geopolitical events tend to be short-lived, which creates good buying opportunities for investors in the medium term.”

For the third session in a row, the arena in Moscow was closed due to the conflict, which led to significant devaluations of currencies. On the first day of the invasion (Thursday of last week), the fall of the main Russian index became the fifth worst event in the history of global financial markets.