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Stock markets: FTSE 100 drops as investors await Russia-Ukraine peace talk result

By Indrabati Lahiri

09:14, 10 March 2022

The Financial Times Stock Exchange (FTSE) 100 Index with arrow shown pointing down
The FTSE 100 has dropped along with other leading UK stocks as investors await the outcome of peace talks in Ukraine – Photo: Shutterstock

UK stocks dipped on Thursday morning, with the FTSE 100 index inching lower as investors anxiously waited for the result of peace talks between Russia and Ukraine. Ukraine has already mentioned that it is open to peace talks, but is not inclined to give up territory.

The uncertainty contributed considerably to investor anxiety, especially as Western sanctions and bans on Russian supppliers are putting a strain on oil and commodity markets worldwide.

European stocks reflected the same downbeat sentiment, as investors looked forward to the European Central Bank monetary policy meeting. Speculations of Christine Lagarde taking a more dovish approach and choosing to wait and evaluate the situation before taking any major steps abounded.

Overnight in Asia, Hong Kong’s Hang Seng (HK50) index climbed up, as did the US S&P 500 (US500) index.

US100

15,778.50 Price
-0.310% 1D Chg, %
Long position overnight fee -0.0262%
Short position overnight fee 0.0040%
Overnight fee time 22:00 (UTC)
Spread 1.8

US30

36,162.60 Price
-0.080% 1D Chg, %
Long position overnight fee -0.0262%
Short position overnight fee 0.0040%
Overnight fee time 22:00 (UTC)
Spread 2.2

US500

4,560.60 Price
-0.150% 1D Chg, %
Long position overnight fee -0.0262%
Short position overnight fee 0.0040%
Overnight fee time 22:00 (UTC)
Spread 0.8

DE40

16,430.80 Price
-0.040% 1D Chg, %
Long position overnight fee -0.0220%
Short position overnight fee -0.0002%
Overnight fee time 22:00 (UTC)
Spread 1.5

What’s interesting today: National Express Group (NEX) announced an annual profit, following the company revealing that it was mulling its options for Stagecoach (SGX) after a rival company upped its bid. DS Smith (SMDS) has announced that they expect box volume growth to neutralise higher costs, boosted further by rising prices.

Why are stocks down today?

Following approximately two weeks of fighting, the Russia-Ukraine peace talks seem finally to be on the table now, and investors are keenly awaiting the result.

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  • What this means: The Russia-Ukraine conflict has thrown the whole world into turmoil, with an especially harsh impact on oil and commodity markets and supply-chain constraints driving prices up even higher.

    Russia has also faced a number of international sanctions from Western powers, mostly, which have further escalated the situation. Hence, investors are hoping the peace talks will cause markets to recover in the near future.

Stock markets: key highlights

  • The FTSE 100 (UK100) index inched lower by 1.10% to 7,111.9 points.
  • The Euro Stoxx 50 (EU50) index dropped by 2.21% to 3,682.7 points.
  • Germany’s DAX (DE40) index dipped by 2.07% to 13,561.3 points.
  • France’s CAC 40 (FR40) index edged lower by 2.10% to 6,253.6 points.
  • The leading sectors in the UK were finance and mining, whereas consumer services and consumer non-durables took a hit.
  • US S&P 500 futures dropped by 0.55% to $4,251.3.

Market sentiment

  • The Chicago Board Options Exchange (CBOE) Volatility Index, or VIX (VIX) – a measure of expected fluctuations in US stocks – increased to 33.31.
  • The US Dollar Index (DXY) dropped to $98.29.
  • The US 10-year bond yield dipped to 1.946%.

Top stock gainers: UK and Europe

  • The top stock gainers in the UK were London Stock Exchange Group (LSE), M&G (MNG) and Glencore (GLEN).
  • London Stock Exchange Group shares rallied following the company announcing that it would be ceasing news distribution in Russia.
  • M&G shares inched up following the company recently buying TCF in order to venture into the portfolio market.
  • Glencore shares edged up following Barclays (BARC) increasing its price outlook recently.
  • The best performing companies in Europe were Adidas (ADSGN), Deutsche Post (DPW) and Adyen BV Parts Sociales (AYDEN.AS).
  • Adidas shares gained following the company announcing it is closing its stores and online site in Russia.
  • Deutsche Post shares inched up following the company upping dividends as profits increased.
  • Adyen B.V Parts Sociales shares climbed up following the company being given an ‘outperform’ rating by Credit Suisse recently.

Top stock losers: UK and Europe

  • The worst-performing companies in the UK were Polymetal International (POLY), Evraz (EVRgb) and ITV (ITV).
  • Polymetal International shares dropped following the LSE cancelling trading in the company’s shares.
  • Evraz shares dipped following the company announcing it would be exiting the FTSE 100 index by the end of this month.
  • The top stock losers in Europe were Vonovia (VNA), Inditex (ITX) and Ab InBev (BUD).
  • Vonovia shares dip despite receiving a ‘buy’ rating from Goldman Sachs (GS) recently.
  • Inditex shares dropped following the company announcing that it was stopping trade in Russia for the time being.
  • Ab InBev shares inched lower following the company having to deal with falling margins for the past few months.

Markets in this article

ADSGN
Adidas
194.65 USD
0.6 +0.310%
BUD
ABInBev
63.21 USD
-0.23 -0.360%
BARC
Barclays
1.3995 USD
-0.0125 -0.890%
DHL
DHL Group
44.115 USD
0.11 +0.250%
EU50
EU Stocks 50
4424.9 USD
-2.2 -0.050%

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The difference between trading assets and CFDs
The main difference between CFD trading and trading assets, such as commodities and stocks, is that you don’t own the underlying asset when you trade on a CFD.
You can still benefit if the market moves in your favour, or make a loss if it moves against you. However, with traditional trading you enter a contract to exchange the legal ownership of the individual shares or the commodities for money, and you own this until you sell it again.
CFDs are leveraged products, which means that you only need to deposit a percentage of the full value of the CFD trade in order to open a position. But with traditional trading, you buy the assets for the full amount. In the UK, there is no stamp duty on CFD trading, but there is when you buy stocks, for example.
CFDs attract overnight costs to hold the trades (unless you use 1-1 leverage), which makes them more suited to short-term trading opportunities. Stocks and commodities are more normally bought and held for longer. You might also pay a broker commission or fees when buying and selling assets direct and you’d need somewhere to store them safely.
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