Update – BVB closes with 2pc losses on Tuesday, opens Wednesday transactions on the increase

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The Bucharest Stock Exchange (BVB) closed down on Tuesday with 2% decreases on all indices, but opened the Wednesday session on the plus after the recent losses. The main index, BET, was up by 1.91% at 10.00h. At the same time, BET-Fi climbed by 1.93% and BET-NG by 1.9%.

On Tuesday the BET index, showing the evolution of the 13 most liquid shares, declined by 2.13% to 8,007.41 points.

The BET-Plus index, which shows the evolution of the 37 most liquid stocks on the Bucharest Stock Exchange, closed down by 2.15%, the SIF BET-FI index was down by 2.37%, and BET-NG, the index of the 10 energy and utilities companies, fell by 2.07%.

The Dow Jones stock index posted a decline of 1,175 points on Monday, the highest drop since the 2008 financial crisis, with S&P 500 and Nasdaq stocks feeling the trend, which attracted the US Presidency’s ‘concern’.

However, the US stock markets have ended a day of massive fluctuations on a high note, rebounding on Tuesday after steep losses.

The Dow Jones Industrial Average closed up 2.3%, while the Nasdaq hit 2.1% and the S&P 500 rose 1.7%.

Stocks shuttled between positive and negative territory throughout the day, their activity spanning more than 1,000 points.

The decline on the stock markets began last week after a sharp rise in US bond yields following the announcement on Friday showing that the wage levels in the US have recorded the fastest growth since 2009, raising fears about higher inflation.

The decline on the US stock exchanges came after months of rising to record levels that generated speculation over the companies’ assets overvaluation.

The richest 500 people in the world have lost USD 114 billion on Monday as a result of the decreases on the Wall Street, as the optimism about tax cuts, which fuelled the earnings in January, have raised concerns about inflation.

Asian markets fell again on Tuesday as investors reacted strongly to the news that the Dow Jones had the biggest decline in the past six years.

On Wednesday, Japan’s Nikkei 225 index pulled back from early highs to add 0.2%, while Hong Kong’s Hang Seng lost 0.8%.

European stock markets recovered ground on Wednesday as a rally in Asia ran out of steam after three days of frantic trading.

London’s FTSE 100 opened up 0.7%, while in Paris and Frankfurt markets were 0.5% higher.

Fin Min Teodorovici: The developments will not affect Romania

eugen-teodoroviciFinance Minister Eugen Teodorovici has said on Tuesday, referring to the fall registered by stock markets worldwide, that Romania will not be affected.

“In theory, everything could affect us, one way or another. The bright side is – I understand as positive message what happened last week, when the Finance Ministry attracted a EUR 2 billion loan from the foreign markets, which shows the investors’ interest for the Romanian market, for the Romanian economy, over long term – this is an important message. The second one is the structure of investors, they are from Germany, Austria, UK and the US. Furthermore, the costs are very advantageous. These are three issues showing the confidence of foreign investors in Romanian economy over long term, and this is what matters. It will not affect us, this is my viewpoint,” Teodorovici said.

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