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Additional Russian Sanctions & Policies , European Stocks Fall

| 6.4.22 |

Additional Russian Sanctions & Policies , European Stocks Fall

 European stock markets fell on Wednesday (06/04) evening, weighed down by the possibility of imposing new Western sanctions against Russia as well as fears of aggressive monetary tightening by the US Federal Reserve. At 3:25 p.m. EDT, Germany's DAX was down 1.33% at 14,232.39, France's CAC 40 was down 1.22% at 6,564.16 while Britain's FTSE 100 was down 0.5% at 7,575.40. The United States and Europe will announce local Wednesday evening new sanctions to punish Moscow for alleged atrocities in Ukraine, what Ukrainian President Volodymyr Zelensky described as "war crimes" in a speech to the UN Security Council. 

The European Commission has proposed new sanctions including banning imports of Russian coal and halting trade worth nearly 20 billion euros ($22 billion), and the White House said late Tuesday its new measures would target Russian banks and officials and ban investment in Russia. Russia's invasion of Ukraine and sanctions that have been imposed by the West as punitive measures have rattled markets, leading to sharp rises in commodity prices, fueling fears of growth slowing sharply this year. German factory orders fell 2.2% in February before Russia's invasion of Ukraine, falling for the first time in four months and highlighting concerns over weaker growth in Europe's biggest economy. 

Also, weighing on European markets was the negative trend from Asia and Wall Street after comments from Fed Governor Lael Brainard boosted expectations of aggressive rate hikes by the US central bank, added by hawkish comments from Fed Governor Lael Brainard, usually seen as one of the bank's policymakers. a more dovish centre. This puts focus on the release of the minutes from the Fed's last policy meeting, with investors looking for clues on a possible 50 basis point rate hike at the US central bank's next meeting in May. In corporate news, Volkswagen (DE:VOWG_p) shares fell 2.7% after the German automaker's chief financial officer Arno Antlitz told the Financial Times that the company is likely to ditch many models by the end of the decade concentrating on producing fewer cars overall but premium vehicles more profitable. 
Vestas Wind Systems (CSE:VWS) shares fell 1.3% after the Danish wind turbine company said it would withdraw from Russia, where it has two factories. 

Oil prices rose Wednesday afternoon. Traders had to balance supply concerns on the back of possible new sanctions against Russia with concerns over weaker demand in the wake of rising US crude inventories and the prolonged COVID lockdown in Shanghai, China's financial hub. US crude supply data from industry body the American Petroleum Institute, released late Tuesday, showed an increase of more than 1 million barrels for the past week, compared with a decline of 3 million barrels reported the previous week. 

Investors now await official figures from the US Energy Information Administration in the next session for confirmation. At 3:48 p.m. ET, US crude prices were up 1.31% at 103.30 per barrel, while the Brent contract was up 1.22% at $107.94 per barrel. Additionally, gold futures were down 0.11% at $1,925.35/oz, while EUR/USD was up 0.17% at 1.0921.

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