Stocks and Bitcoin take fresh hits as a host of fears combine to hit the markets | Business News

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Wholesale gas costs rose sharply while bitcoin and stock market values ​​fell further as tensions over Russia’s intentions regarding Ukraine led to a mix of concerns manipulated by global investors.

Market volatility is based on the heavy selling that saw the US Nasdaq come under special pressure and endure its worst trading week since March 2020 last week.

This is largely due to fears of inflated market values ​​and an acceleration of interest rate hikes going forward as the Federal Reserve is under mounting pressure to cool high inflation at its meeting this week.

The start of the new trading week saw a build-up of heavy selling in Europe – based on Friday’s US price-related losses and tech beat.

The risk flight also saw Bitcoin drop more than 6% to below $34,000 for the first time since July of last year.

The pound was also pressured and fell by six tenths of a cent on the dollar as the so-called safe haven US currency found support.

The FTSE 100 was 99 points – or 1.3% lower – in late morning trades, led by miners.

This built on the 1.2% losses seen on Friday.

The percentage decline in France, Germany and Italy on Monday was even more severe with the MIB in Milan down more than 2.5%.

Market analysts have pointed to the growing impact of Russian-Ukrainian tensions.

That was evident in wholesale gas prices, which rose across Europe on Monday amid no indication the standoff was any closer to a diplomatic solution.

NATO revealed that it was strengthening its air and naval forces in the region while the United Kingdom joined the United States in withdrawing some of their embassy staff from Kiev.

UK wholesale gas contract for February delivery is up 8% on Monday, although at 207 p-er-therm, it’s still well below the unprecedented highs above 400p seen last year.

These additional costs, without government intervention, are expected to raise the energy price cap by 50% for households from April.

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5:55 Sky News Data and Economics Editor Ed Conway looks at the impact of higher energy bills on families across the UK.

It is the specter of inflation that has hurt market sentiment – particularly in the US where the era of central bank support is ending.

All major US indices have been retreating from record levels this year as inflation threatens to dampen consumer and business demand.

AJ Bell chief investment officer, Ross Mold, wrote: “The Federal Reserve meets on Wednesday amid expectations of a first rate hike in March and more hikes to come this year than previously expected.

“This has been signaled by rising bond yields. Tough monetary policy has had negative effects on technology stock valuations and they have seen significant declines in recent weeks.

“Maybe Apple, Microsoft and Tesla can save them with some knockout numbers when they report this week. On the other hand, a series of disappointing updates from these tech giants will only serve to undermine sentiment further.

“The changing market landscape is further complicated by the increasingly noisy rattle of swords by Russia on the Ukrainian border.

“Escalation into a full-fledged armed conflict is likely to lead to market volatility and possibly a further increase in energy prices — only adding to the current inflationary pressures.”

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