At the lowest level for about a month fell the indicators of the international stock markets due to the increased tension before Sunday’s referendum in the Crimea and concern for the development of Chinese economy. Investors turned to considered safe havens of bonds and gold. The European stock index Eurofirst 300 began with losses of 0.6%, while the German stock index DAX, companies which have the largest exhibition in Russia, faced the biggest weekly decline since the peak of the crisis of the euro in June 2012. Brunt accepted the Russian stock index MICEX, which fell more than 5%, reaching its lowest level since 2009.
Neither the ruble declined pressures, as the rate ranged near historically low level. The shifts in the safety fall pushed the yields on German bonds, while there had been a decline in yields on 10 year U.S. bonds at 2.638% which is low two weeks. The price of gold stood at 1,369.06$ per ounce, having reached a high six months and is expected to record an increase for the sixth straight week. The euro remained under pressure after the comments of the President of the European Central Bank Mario Draghi, who said that the ECB is preparing additional measures to prevent the possibility of deflation in the Eurozone.
The euro fell 0.1% to 1.3860$, while yesterday it had reached 1.3967$ before the speech by Mr Draghi. Russia went to new military exercises near the border with Ukraine, despite the warning from the U.S. and Europe that Moscow is risking to face serious action if the result of the referendum Sunday is the annexation of Crimea by Russia. The stock index Japan Nikkei fell 3.3%, closing the week with a drop greater than 6%. One of the reasons for the decline in the Nikkei was that the Ukrainian crisis prompted investors to the Japanese currency, considered a safe haven, pushing the rate up both against the dollar and against the euro.
By Nicole P.