Brussels, Europe Brief News – European Stocks have been under immense pressure with the rising tension between Russia and Ukraine. As Joe Biden warned that Putin seems to have made his mind to invade Ukraine has triggered volatility across the European stock market.
Germany’s Main Stock index got hit when Separatists regions of Donbass’ ‘ announced the Withdrawal of residents on Friday. It reportedly fell more than 1% in value and is moving to hit a four month low.
The United States has suggested that Russia could attack Ukraine at any time and might produce a surprise pretext for an attack.
The US has also confirmed that it will combine with its allies to make every effort to secure each and every inch of NATO’s Territory.
Citi Analysts claimed that their basket of European companies with Russian exposure has underperformed during periods of immense pressure as in 2014 and 2018 after western Union imposed Sanctions on Russia.
European Stocks With Higher Risk
Investors are observing the shares that are at risk from potential sanctions that Russia may have to face in case they invade Ukraine. Those are Oil mining, consumer and construction material etc.
The investment bank has issued a list of European stocks that could suffer the most with exposure to Russia and Ukraine include Beverage companies Coca Cola and Carlsberg.These two companies make 13 to 15 percent of their annual sales in Russia.
As per Jefferies Analyst, France popular video gaming firm Ubisoft has 4% of its workspace in Ukraine. On the other hand Sweden based healthcare Medicover made around 8.5% of its sales in the same country.
This shows how Russian invasion of Ukraine can result in huge downfall for so many famous firms across Europe.
JP Morgan said “European banks with local branches in Russia are the most exposed to risk resulting from Potential sanctions in the event of any further escalation”.
Goldman Sachs analysis said that since Russia fulfilled 35% of Europe’s Gas demands , the Russia-Ukraine tension has increased the chances of Gas disruption in Europe .
They further added “We would expect the German DAX and MDAX to be more vulnerable than other countries indicate , mainly due to the reliance of their companies on energy for their production”.
They suggest that oil and gas companies can suffer more if the escalation between two countries increases.
