Equities should continue to fall, weighed down by the war in Ukraine and the rise in oil. The Eurostoxx 50 opens at 3,512.22 points (-1.23%), the CAC 40 at 5,982.27 points (-1.31%), the DAX 40 at 12,834.65 points (-1.98% ), the FTSE 100 at 6,959.48 points (-0.40%), the SMI at 11,204.67 points (-0.84%), the AEX at 669.04 points (-0.40%), the BEL 20 at 3,682.48 points (-2.07%), IBEX 35 at 7,644.60 points (-0.99%), DJIA at 32,817.38 points (-2.37%), Nasdaq at 12,830.96 points (-3.62%), the S&P 500 at 4,201.09 points (-2.95%) and the Nikkei 225 at 24,790.95 points (-1.71%).

Regarding exchange rates, the change from the close in New York indicates that EUR/USD opens at 1.0861 (+0.05%), EUR/JPY at 125.42 (+0.17%) and USD/JPY at 115.49 (+0.13%).

European equity markets are expected to continue their decline on Tuesday, as soaring commodity prices heighten investor fears about the economic consequences of the war in Ukraine. At 7:30 a.m., the CAC 40 futures contract lost 172 points, or 2.9%, according to data from broker IG Markets. The DAX 40 contract was down 347 points, or 2.7%, and the FTSE 100 contract was down 111 points, or 1.6%.

Ukrainian and Russian negotiators wrapped up a third round of talks on Monday without much progress. The Ukrainian army held firm on several fronts while Russia continued to bombard towns and residential areas. Moscow agreed to open humanitarian corridors on Tuesday to evacuate civilians from the country's main cities. Since Russia's invasion of Ukraine, soaring commodity prices, financial sanctions against Moscow and the possibility of a Russian energy embargo threaten to derail a global economy still weakened by the pandemic. of Covid-19. This situation also complicates the task of the central banks which had been prepared to gradually reduce their support measures.

On both sides of the Atlantic, inflation is reaching levels not seen for decades and continues to accelerate. Global stock markets fall and the dollar soars against other currencies, as investors rush to the safety of US assets. In this context, Wall Street closed sharply lower on Monday. The Dow Jones index (DJIA) lost 2.4% to 32,817.38 points. The broader S&P 500 index fell nearly 3% to 4,201.08 points. The Nasdaq Composite index, rich in technology stocks, fell 3.6% to 12,830.96 points, its lowest in more than two years.

Asian markets also continued their decline on Tuesday. In Tokyo, the Nikkei index ended the session down 1.7%, at 24,790.95 points, closing below 25,000 points for the first time since November 2020. At the end of the session, the Hang Seng index of the Hong Kong Stock Exchange dropped 0.9% and the Shanghai Composite lost 1.5%. In addition to the conflict in Ukraine, investors will be watching the final estimate of the euro zone's fourth quarter gross domestic product (GDP) on Tuesday, as well as figures for Germany's industrial production in January and the US trade deficit. United for the same month.

U.S. Treasury bond yields continued to rise Tuesday morning, issuing a warning to markets as the war in Ukraine escalates. Some economists fear that the combination of this conflict, high inflation and rising interest rates could cause a recession in the United States, a scenario which seems to be reflected in the narrowing of the yield gap between two-year and ten-year Treasury bonds.

The euro is up slightly against the dollar on Tuesday morning. However, the single currency could widen its recent losses, penalized by the rise in oil prices, estimates BMO Capital Markets. The negative correlation between the euro/dollar pair and oil is strengthening, adds the financial intermediary.

Oil futures rallied higher on Tuesday morning as traders continued to assess the impact of possible US sanctions on Russian crude. Germany, very dependent on Russian gas and oil, has however indicated that it has no plans to limit imports of Russian energy. At the same time, oil production in Libya is being disrupted by damage to pipelines, causing additional stress in global oil markets, ANZ says. By 7:20 a.m., the May contract for Brent North Sea crude was up $4.57, or 3.7%, at $127.78 a barrel, while the April contract for light sweet crude (WTI) quoted at Nymex took $3.41, or 2.9%, to $122.81 a barrel.