Feb 25, 2022 01:56AM ET
By: AnalysisWatch
European stock markets are set to open higher on Friday, helped by the strong reversal on Wall Street overnight, as investors digest the potential long-term impact of new sanctions imposed by the US and its allies on Russia following its invasion of Ukraine.
At 2 am, DAX futures in Germany were trading 0.1% higher, CAC 40 futures in France climbed 1.5%, and FTSE 100 futures in the UK rose 1.1%.
European stock markets closed sharply lower on Thursday, with the DAX, FTSE 100, and CAC 40 falling nearly 4% after Russian President Vladimir Putin authorized a full-scale invasion of his southern neighbor and unleashed troops, tanks, and missiles on Ukraine.
US stocks on Wall Street also fell initially but saw a dramatic turnaround towards the end of the day when US President Joe Biden, along with his G-7 allies, unveiled new sanctions targeting Russia's ability to do business with the world's major currencies, as well as measures against banks and state-owned enterprises.
However, the new measures were not aimed at cutting Russia off from the international SWIFT banking system or targeting its oil and gas exports, which could have had serious repercussions for Western economies that are recovering from the damage caused by the COVID-19 pandemic.
Yet any recovery could be short-lived as Russia's military action in Ukraine poses major risks to the global economy.
German chemical giant BASF is in the spotlight after forecasting a drop in operating profit for 2022 as its supply chain remains vulnerable to disruptions.
Swiss Re reported a lower-than-expected full-year profit for 2021, with the reinsurer partially recovering from the coronavirus pandemic despite high natural catastrophe losses.
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