Just now, the "black" spread, and there was a collective plunge!

[Introduction] Major European Stock Indices Fall Collectively, German DAX30 Index Drops Over 2%

Continued Turmoil in Overseas Markets!

On March 9, major European stock indices opened lower: the Euro Stoxx 50 index fell nearly 3%, the German DAX30 index and the French CAC40 index dropped over 2%, and the UK FTSE 100 index fell more than 1%.

As of the time of writing, major European indices still show significant declines.

In Germany, stocks such as Siemens Energy, Infineon Technologies, MTU Aero Engines, and Airbus Group all fell, leading the decline in the German DAX40 index.

With international oil prices soaring, TotalEnergies saw a slight rise in its stock price, becoming the only stock in the French CAC 40 index to increase.

Bank stocks fell, with Société Générale dropping over 3%.

On the news front, tensions in the Gulf region show no signs of easing. Data released by the UK Maritime Trade Operations Office indicates that since the military strikes by Israel and the United States on Iran on February 28, about 10 vessels have been attacked in or near the Strait of Hormuz. Additionally, according to the International Maritime Organization, there were a total of 9 incidents of vessels being attacked in the strait within a week, resulting in 7 fatalities.

On March 8, Reuters reported, citing sources, that due to conflicts in the Middle East, crude oil produced in Iraq could not be exported through the Strait of Hormuz, and crude production from the country’s main oil fields in the south has decreased by nearly 70%.

The ongoing military strikes in the Middle East have prompted countries around the world to reconsider their dependence on oil and gas from the region, with coal prices soaring to their highest level since November 2024. Asian benchmark Newcastle coal futures surged by 9.3% on Monday, reaching $150 per ton.

European natural gas futures prices spiked at the start, with the increase narrowing to 16% at the time of writing.

In response to soaring energy prices, reports indicate that Italian Prime Minister Meloni plans to quickly introduce a new decree to address the spike in energy prices caused by the Middle East conflict. It is currently unclear if the decree will impose windfall taxes on energy companies, though Meloni mentioned this possibility in a recent radio interview: “We are determined to combat speculation.”

Additionally, according to sources cited by the Financial Times, G7 finance ministers will hold an emergency conference call with International Energy Agency (IEA) Director Fatih Birol to discuss a coordinated release of strategic oil reserves. Reports indicate that three G7 member countries, including the United States, have expressed support for this plan. Some U.S. officials believe that releasing between 300 million to 400 million barrels of reserves—approximately 25% to 30% of the total reserves of IEA member countries, which stands at 1.2 billion barrels—would be an appropriate scale.

Tianfeng Strategy notes that conflicts involving major oil-producing countries typically drive up oil prices early in the event; if the supply system experiences sustained damage, soaring oil prices will impact the global economy. Historically, the stock market tends to see a certain degree of pullback at the onset of conflicts, but as the market gradually digests geopolitical conflict information, volatility peaks, and risk assets usually revert to their original industry trends.

Produced by: Lu Mi