The uncertainty of potential outcomes between Ukraine and Russia looms over investors, and for now, we can not see the light at the end of the tunnel.
NATO, EU, and G-7 leaders had a meeting in Brussels over the raging Russia-Ukraine war and reiterated their full support for Ukraine.
NATO leaders agreed to activate its chemical and nuclear defense units in light of a potential chemical attack by Russian forces in Ukraine, while G7 leaders agreed to block financial transactions involving the Russian central bank’s international reserves of gold.
EU leaders committed to creating a “Ukraine solidarity Trust Fund” to support the country while NATO chief Jens Stoltenberg said that the alliance would continue providing advanced air defense systems, anti-tank weapons, ammunition, and fuel to Ukraine. NATO chief Jens Stoltenberg added:
To avoid a war between Western powers and Russia, NATO would not send troops or deploy jets in Ukrainian territory. That would cause even more suffering, even more death, even more destruction.
US President Joe Biden said that the “free world” opposes Russia’s invasion of Ukraine and that there is unity among major economies on the need to stop Vladimir Putin.
After the NATO and G7 summits, Biden also said told that he had warned Chinese President Xi Jinping that Beijing could regret siding with Russia in this war.
In an effort to reduce the EU’s dependence on Russian energy, the US agreed to increase liquid natural gas (LNG) exports to the EU by 15 billion cubic meters in the 2022 year.
Negative information is that Germany’s business climate index declined to 90.8 in March from 98.5 in February, and many companies expect that the situation could worsen amid the current situation.
The war between Ukraine and Russia continues to cause supply chain issues to many companies that look to find other sources for their parts. Raw materials and commodities prices advanced to multi-year highs, and many companies have already reported they had lost sales because of these problems.
European Central Bank members believe that inflation was likely to continue higher-than-predicted for longer, but ECB reported last week that it will start to gradually phase out its temporary COVID-19 collateral easing measures from July 2022 to March 2024.
DAX has stabilized above 14,000 pointsGermany’s DAX index has recovered from its lows reached at the beginning of March 2022, but the risk of another decline still persists, especially if the Ukraine crisis worsens.
Data source: tradingview.com If the price falls again below the 14,000 support level, the next target could be around 13,500 or even 13,000. On the other hand, if the price jumps above 14,500 points, the next target could be 14,800.
SummaryGermany’s DAX index has recovered from its lows reached at the beginning of March 2022, but the war between Ukraine and Russia continues to keep investors in a negative mood. NATO, EU, and G-7 leaders have a meeting in Brussels over the raging Russia-Ukraine war and reiterated their full support for Ukraine.
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