U.S. exchanges have responded to the crisis decline in Ukraine
Stock trading in New York on 3 March 2014. resulted in a decrease in the leading index on the aggravation of geopolitical crisis over Ukraine. Investors are extremely concerned about the situation in Ukraine and the possible introduction of Russian troops on its territory after March 1 Federation Council gave President Vladimir Putin eligible for this measure for the period to stabilize the situation in the country.
Western countries have threatened Russia with economic sanctions , the country’s ” Big Seven ” (G7) suspended their participation in the Sochi summit this summer , and the new Ukrainian government has accused the Kremlin in the declaration of war. On the eve of Washington also said it would suspend all negotiations with Moscow in the field of trade and investment , as well as cooperation in the military sphere .
Against this background, March 3 all world markets closed deep in the “minus ” . In Japan, the Nikkei index fell by 1.3% , European stock indexes also ” collapsed ” : German DAX fell 3.4% , France’s CAC 40 – by 2.7% , the British FTSE100 – by 1.5%.
Experts note that the trading platforms , even if the crisis is over today or tomorrow , will long be in the “red” zone. ” So , a senior economist at FxPro Simon Smith said: ” The geopolitical problems have a habit of hitting the markets. In this particular case, investors’ concerns may continue for as long as Ukraine will be on the front pages of the media. ” And this situation can really drag . ” Ukrainian crisis – is the ” seismic hazard ” geopolitical event since September 11, 2001. “- Added the expert political risk consultancy Eurasia Group , Ian Bremmer .
From corporate news : traders expected continuation of a series of quarterly reporting companies associated with promising direction 3D- printing. Late last week, is already quite successfully reported company 3D Systems, and today before the start of the trading session data presented Stratasys. Profits and revenues for the IV quarter of 2013-2014 fiscal year were slightly better than analysts’ expectations, but it was not enough to quote Stratasys changed contrary to the overall negative market dynamics , and the resulting paper companies fell by 2.5%.
Also after the close of trading investors awaited publication of the report SolarCity – the most expensive American company engaged in solar energy. However, the company not only postponed release financial results, but also stated that it will review the data for 2012. and 2013. because they had discovered accounting error . Despite the fact that as a result of the revision of the company’s revenue for the first 9 months of 2013. (Sept. 30 ) will increase from $ 16 million to $ 20 million , and for the whole of 2012 . with $ 20 million to $ 23 million , the company’s shares have fallen in price by 2%.
Chain stores menswear Men’s Wearhouse reported that began merger talks with its rival – menswear retailer Jos.A.Bank. As a result, share prices of retailers vary in different directions : Men’s Wearhouse loses market value of 0.4 % , while paper Jos.A.Bank rise in price by 0.4%.
By the end of trading session on March 3 , 2014 . Dow Jones index fell by 153.68 points ( -0.94 % ) – up to 16,168.03 points, the S & P dropped by 13.72 points ( -0.74 %) – to 1845.73 points, while the NASDAQ index dipped 30.82 points ( -0.72 %) – to 4277.30 points.