European markets driven by technology awaiting possible sanctions

After hesitating for part of the session, Paris takes 0.70%, Frankfurt 0.50%, London 0.28% and Milan 0.05%.

Global markets rose on Monday, driven by US technology stocks, as investors await further developments on possible Western sanctions against Russia.

After an opening with no trend, Wall Street went into the green, driven by the Nasdaq, which took 1.45%. The Dow Jones was at equilibrium and the S&P 500 rose 0.49% around 4:00 p.m. GMT.

After hesitating for part of the session, Paris took 0.70%, Frankfurt 0.50%, London 0.28% and Milan 0.05%.

The market follows news on the diplomatic and military aspects of the war in Ukraine on a daily basis.

Europeans, revolted by the images of dozens of corpses found around kyiv, are discussing on Monday an increase in sanctions against Moscow, accused of “genocide” in Ukraine, but which categorically rejects these accusations and claims to have discovered signs of “video falsifications”.

If “few are those who dispute the need for more severe measures”, an embargo on Russian hydrocarbon exports, regularly mentioned since the start of the invasion, is unlikely to materialize, with countries, such as the Germany, who would suffer much more than others, said Craig Erlam, an analyst at Oanda.

Such a measure “would certainly tip the country into recession”, according to him.

Germany cannot do without Russian gas supplies “in the short term” and sanctions against Moscow in this sector would hurt the EU more than Russia, German Finance Minister Christian Lindner said on Monday.

In the bond market, two-year U.S. government bond yields eased but remained set above ten-year rates, an anomaly that means investors fear the scale of expected monetary tightening could lead to a sharp slowdown in the economy, or even a recession.

Several members of the Fed will be speaking this week and investors are awaiting an indication of the strength of the next rate hike on Wednesday when the minutes of the institution’s last monetary policy meeting are published.

oil goes up

Oil prices rose on Monday after hesitating at the start of the session, with the possible new Western sanctions.

Around 3:35 p.m. GMT, a barrel of Brent from the North Sea for delivery in June took 3.03% to 107.55 dollars.

A barrel of US West Texas Intermediate (WTI) for delivery in May advanced 3.49% to 102.73 dollars.

The euro fell 0.45% to 1.0993 dollars.

Bitcoin fell 1.41% to $45,735.

Elon Musk delights Twitter, tech follows

Boss of electric vehicle manufacturer Tesla and spaceflight company SpaceX, Elon Musk put Twitter into orbit on Monday after making public a stake of more than 9% in the social network. The stock jumped 25.29% to $49.25, returning to its November 2021 level.

Conversely, Digital World Acquisition Corp, a company linked to former US President Donald Trump’s new social network “Truth Social”, fell by more than 13%.

The entire technology sector benefited from this movement, in particular the social network Meta (Facebook), which took 3.35%, the other technological giant Apple (+ 1.68%) or PayPal (+ 2.87%) . In Europe, Dassault Systèmes (+2.80%) or SAP (+1.83%) also rose.

Real estate supports London

Real estate stocks such as Barratt (+3.69%), Persimmon (+3.03%) or Berkley (+3.03%) have risen sharply in London, with the hope that the government will not “give up require companies to contribute to a pavement rehabilitation fund,” according to CMC Markets analyst Michael Hewson.

Also in London, the clothing group Ted Baker jumped 14.35% after announcing the launch of a formal sale process and specifying that it had already rejected two offers from the American fund Sycamore Partners which “significantly undervalued the company”.

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