Investors keep an eye on Ukraine events and evaluate the IMF’s latest global economic estimates as European markets witnessed some modest advances after beginning flat on Wednesday.
The Stoxx 600 index in Europe opened flat. Still, it quickly turned positive, rising 0.3 percent to trade 0.3 percent higher; hence, the bulk of sectors are in positive territory. Credit Suisse Group shares fell 2.5 percent after the Swiss bank announced that it anticipated a loss in first-quarter earnings due to increased legal provisions. Heineken’s stock rose 3.6 percent after the world’s largest brewer announced higher-than-expected first-quarter beer sales. ASML’s stock rose 1.6 percent after the company’s first-quarter earnings were marginally above forecasts.
Impact of War on European Markets
The crisis has reached a new phase, with violent violence erupting in the country’s east. On Monday, Ukraine announced that Russia’s attack in the eastern Donbas area had begun; labeling it the “second phase” of the conflict. The eastern city of Kreminna, according to its regional governor, fell to Russian forces on Tuesday; marking the first city taken in this phase of the battle.
Investors are also analyzing the International Monetary Fund’s and World Bank’s most bleak global growth projections. The IMF lowered its global growth forecasts for 2022 and 2023 on Tuesday, claiming that the economic consequences of Russia’s invasion of Ukraine will “proliferate far and wide, adding to price pressures and intensifying key policy concerns.”
The World Bank cut its global growth prediction for 2022 from 4.1 percent to 3.2 percent on Monday.