Markets fall again as oil surges, ECB faces complex dilemma
Financial markets started another volatile week on Monday, extending their declines after leading stock market indices fell sharply on Friday amid worries about the ripple-effects of Russia’s war against Ukraine. Oil prices surged further on Monday, with North Sea Brent crude trading near a record high 139 dollars per barrel amid talk of a ban on Russian oil imports.
‘Russia risk needs to be seen in perspective’
A leading German economist on Monday urged investors not to exaggerate financial risks around a possible Russian invasion of Ukraine, saying an invasion would merely lead to a “temporary setback” while underlining the need to put the Russia risk into perspective.
“All in all, we would expect the European economy and markets to rebound shortly afterwards from a temporary setback which a Russian attack on the Ukraine would probably cause,” said Holger Schmieding, Chief economist at German private bank Berenberg. “Let’s hope it does not come to that.”