The development of the conflict increases dividends in equities

The EU, supported by its Western allies, is considering the possibility of imposing new restrictions on Russia with the aim of forcing a military withdrawal from Ukraine. Among them stands out the freezing of the assets of the Russian central bank and the possibility of imposing an oil embargo on Russia, which will be raised in the next meeting with Joe Biden next Thursday. Faced with these threats, Moscow has responded by warning that the EU sanctions on Russian oil could force them to close one of the important gas pipelines that this country has with Europe. This decision would not lead to large increases in the price of oil and where Germany would be one of the biggest losers since 40% of European gas and specifically German gas comes from Russia. Although the possible meeting between Zelensky and Putin generates positive expectations, the market is still very aware of any progress in the peace talks, as are the Central Banks in the face of the next meetings and decisions regarding rate hikes. This situation of uncertainty and volatility has led to the payment of significant new issue premiums in the equity market in Europe (between 1.8 and 2 times the previous ones), with the aim of attracting investor interest. The levels of oversubscription are still very high as a result of the issue premiums and the generalized liquidity position that continues to wait for attractive entry times. European stock markets closed positive on Friday along with strong gains at the beginning of the week made it the best week since November 2020. The Euro Stoxx 50 closed with an increase of 0.44% to 3,902 points while the Ibex closed slightly positive (+0.07%) to 8,417 points. Among the main values ‚Äč‚Äčthat pulled the Euro Stoxx 50 we find Prosus with increases of 5.31%, ASML with 4.31%, Flutter 3.62% or Adyen with 2.14%. Among the main falls, Vonovia stands out with falls of 3.28%, followed by Eni and Mercedes Benz, which dropped 2.91% and 2.14%, respectively. In Spain, the sectors that boosted the Ibex 35 were services, telecommunications and consumer goods. Highlight the rises of Aena (+5.89%), Pharma Mar (+3.68%) or Grifols (+3.44%). At the bottom of the index was Repsol, which fell by 2.38%, followed by Arcelormittal (-2.30%) and ACS, which fell by -2.19%. Wall Street closed last week with four of the five days in the green, leaving behind the significant losses after the Russian invasion of Ukraine. The Dow Jones rose 0.80%, the technological Nasdaq scored the main gains with an advance of 2.05% while the S&P climbed 1.17% In the foreign exchange market we closed the week with the price of the EUR/ USD, which moved in a range of 1.1003-1.1127 to end up closing the session at levels of 1.1051. The euro depreciated slightly against the Japanese yen and the British pound to 131.73 and 0.8386 respectively. Against the Swiss franc, the community currency also depreciated to 1.0298. INFORMATIONTitleThe development of the conflict increases equity dividendsDescriptionThe EU, supported by its Western allies, is considering the possibility of imposing new restrictions on Russia with the aim of forcing the military withdrawal from Ukraine. These include freezing the assets of the Russian central bank and the possibility of imposing an oil embargo on Russia, which will be discussed at the next meeting with Joe Biden next Thursday. Author GLOBALCAJA

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