European Stocks Slump; War Fears Rise as Russia Moves into Ukraine

European stock markets

DAX 40 is trading up 1.81% at 14721.20

European stock markets slumped Tuesday after Russian President Vladimir Putin ordered troops into eastern Ukraine on recognizing two breakaway regions as independent republics, taking the region to the brink of war.

By 3:35 AM ET (0835 GMT), the DAX in Germany traded 1.6% lower, the CAC 40 in France dropped 0.9% while the U.K.’s FTSE 100 fell 0.5%.

Global stock markets have been on edge for the last week as tensions were ramped up on the Ukraine border. Putin’s decisions to recognize two breakaway regions in eastern Ukraine as independent and then deploy troops in what Moscow called a peacekeeping operation has prompted investors to shun risk, causing a broad-based selloff.

U.S. President Joe Biden followed this by signing an executive order to halt any U.S. business activity in the breakaway regions, and Linda Thomas-Greenfield, U.S. ambassador to the United Nations, said, after an emergency meeting of the Security Council late on Monday, there would be further sanctions announced on Tuesday.

European Union ambassadors meet later Tuesday to discuss a plan for sanctions in response to Putin’s move, while Britain has said it too would sanction Russia.

Investors will also focus on the release of Germany’s Ifo business climate index later Tuesday. Positive signs of an economic recovery could encourage the European Central Bank to unwind post-pandemic stimulus faster than expected, although the uncertainty sparked by the situation in Ukraine could stay the central bank’s hand.

On technical fronts DAX 40 RSI stood at 40.30 and currently it is trading below all MA. So, SELL position can be taken with following target and stoploss:

TRADE SIGNAL – : DAX 40 – SELL: 14722.70, TARGET: 14638.50, STOP LOSS : 14735.00

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