The European stock market fell by 14%, and the tension between the U.S. and Russia is high.
By the morning of January 28, European stocks had fallen 14%, and European politicians urged Europeans to adapt and live with the COVID VIRUS. The latest update on the European health crisis regarding COVID-19 indicates that the European Union might consider the virus as regular flu. Yet, the global stock market will suffer massively, as expected and recent events confirm this.
As of January 28, 2022, the European glob stock fell by 14%, and the reason might be the high tension that has been around since the start of the Ukrainian crisis. The fears of a Russian military invasion of Ukrainian territory are high since the U.S. has already made it clear that in the case of Russian aggressive action, the U.S. will respond the same.
The crisis has harmed the European stock market, and this fall is the worst in years. The COVID variant is recording new high numbers every day among Europeans.
Germans are willing to take a different approach to deal with COVID and start to treat it as seasonal flu. That’s according to the German health minister in an interview this week, plus the Spanish government thinks of the same approach.
Pedro Sanchez, the Spanish prime minister, says that the Spanish government will treat the virus-like normal flu. He also added that considering all that is going on and the effect of the virus on the global economy, we must leave and adapt to the virus.
It’s clear that the global stock market in general and the European stock market specifically can’t hold against new falls. At the moment, the European economy is facing combined hits from all directions. Due to labor shortages, inflation is still rising, and that is causing a global supply chain shortage. On the other hand, there is the omicron spread and the recent Ukraine crisis that has landed both the US and Russia in hot water.
Wall Street experts’ fears are increasing day by day because the crisis might affect the global corporation’s ability to keep up with supply, especially in energy sectors.
Is the NASDAQ stock index tumbling?
Experts and economists agree that it is too soon to summarize or measure the effects of inflation, COVID, and the recent crises. The Nasdaq is rebounding after Apple released its earnings report, but still, there is the concern of small corporations. The latest report found that new IPO and SPAC deal stocks are slowing the tech stock’s growth.
With the mixed performance, investors are lowering their expectations and increasing their disappointment. Moreover, the S&P 500 has a mix of stocks; some major brands are performing and surpassing the analysis, while others are falling behind.
Apple’s 2022 first fiscal report encouraged investors and lifted tech stock performance this week. The fiscal report states that Apple has increased revenue by 11% year over year and has totaled an all-time high revenue of $123.9 billion.
After the release of the first-quarter results, tech stocks rebounded and the Nasdaq index increased for two days in a row. The Nasdaq is still experiencing mixed stock performance, and that leaves inventors a bit cautious.