link : Russian Stocks Collapse Over War Fears
Russian Stocks Collapse Over War Fears
So far, the Russian RTS stock index in USD has only fallen 27% from its high point on October 27 before Putin started threatening Ukraine. It has far more to fall. In 2008, it fell by 80% from May to October (Georgia war + global financial crisis). Putin could not care less.
— Anders Åslund (@anders_aslund) January 21, 2022
CNBC: Russian stocks sink 8%, ruble plunges to 14-month low as conflict fears intensify
* Russian assets have been mired in volatility in recent weeks after a build-up of around 100,000 Russian troops along the Ukrainian border sparked fears from Western powers that Moscow was planning an invasion, an allegation the Kremlin has persistently denied.
* Anders Aslund, senior fellow at the Atlantic Council and chairman of the International Advisory Council at the Center for Social and Economic Research, tweeted Friday that Russian assets could fall further.
The stand-off between Russia and the West over Ukraine sent Russian assets tumbling on Monday.
As of Monday afternoon in Europe, the MOEX Russia Index had dropped around 5.9% and is now down more than 15% year-to-date.
The Russian RTS Index was down 8.1% on the day and around 19% lower so far in 2022.
The Russian ruble was down 2.5% against the dollar at 79.17, its lowest since late 2020.
Russian assets have been mired in volatility in recent weeks after a build-up of around 100,000 Russian troops along the Ukrainian border sparked fears from Western powers that Moscow was planning an invasion, an allegation the Kremlin has persistently denied.
Read more ....
Update #1: Market jitters over Ukraine hammer Russia's rouble, stocks, bonds (Reuters)
Update #2: Russian stocks collapse as U.S. orders diplomat families out of Ukraine (Market Watch)
Update #3: Ruble tumbles as Ukraine tensions rumble (RT)
WNU Editor: A few weeks ago I posted that if tensions over Ukraine were to continue to rise it would be best for Russian businesses and individuals to have no debt and be vested in cash, hard assets, and precious metals. And if the worse case scenario does unfold, those who are liquid will have a lot of opportunities to make a killing. Sad to say that this is what is happening now.
But as bad as the markets are reacting in Russia, the situation is beyond terrible right now in Ukraine .... Ukraine bonds sink into distress (Warsaw Business Journal). This article from RT (of all places) is also right that Ukraine will not be able to fulfill its debt obligations if the current environment continues .... Ukraine could default, economist warns (RT).
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