Global stocks hit by Ukraine war threat

Discussion in 'General Trading Discussion' started by Gomer, Mar 3, 2014.

  1. Gomer

    Gomer Well-Known Member

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    LONDON (Reuters) - The rising threat of war between Ukraine and Russia spooked markets and sent investors scurrying for relative safety on Monday, pushing stocks down sharply - with the Moscow stock market down 9 percent - and lifting gold to a four-month high.

    With Russian troops already on Ukrainian soil after an incursion into Crimea, comments over the weekend from President Vladimir Putin that he had the right to invade the rest of the country were treated as a declaration of war by Kiev.

    Geopolitical ripples from those statements, which included condemnation from the Group of Seven major industrialized nations, spread through markets, hitting Russian assets the hardest and forcing the Russian central bank to aggressively raise interest rates.

    Russia's stock market (.MCX) nosedived 9 percent at the open on Monday while the rouble fell 2 percent to record lows against the dollar and the euro before recovering to trade up 1.3 percent after the central bank dramatically lifted its key lending rate by 1.5 percentage points to 7 percent at an unscheduled meeting.

    Great the market doesn't open for two hrs and the DOW is already down 154 points
     
  2. dianethare

    dianethare Senior Investor

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    So, in such instances, the stock market becomes utterly unpredictable! since gold has lifted to a four-month high in such a situation, could it be advisable to sell or buy or how do the ropes twist, someone be kind enough to explain :)
     
  3. foodietr

    foodietr Member

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    I agree with dianethare. This situation is only beefed up by instances like this which cause a huge public outcry. I also would like to mention that in India, there was a similar situation when the new Prime Minister was elected. The stocks soared up as the man in power was supposed to be a good democrat and vouched to bring the markets back from the dumps. I think a similar situation would arise if Russia takes more steps towards militarising Ukraine, and the impact it would have on global markets is quite high.
     
  4. Silver

    Silver Active Member

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    The stock market is always unpredictable, that's just the nature of the beast. The main reason it is unpredictable is because of speculation and, in this case, people are speculating that war is going to happen over there, driving prices down. In other cases, the market can speculate that Apple is going to do well because of certain press release detailing upgrades to a product, driving prices up.

    In a nutshell, bad news is bad for the economy.
     
  5. oranika

    oranika Member

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    Putin says he has the right to invade Ukraine. My question is where does Putin get that right from? Ukraine is an independent country and Russia under international law has no right whatsoever to invade another country. Putin should not even try it, because lessons from the disastrous invasion of Afghanistan should still be fresh on the minds of their citizens.
     
  6. JadeDoo

    JadeDoo Well-Known Member

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    To put it in perspective, this is sort of how it looks like from Russia's point of view. Imagine if you have a 60% American background(whatever that means) living in a bordering Mexican city and the country has gone into Chaos with no real government in control. Americans are getting beaten up on the streets and their begging for the U.S to do something... and not just stand around. That's the how many Russians see it and some even feel that they have a obligation to do something about it. It's a complicated situation and frankly don't know enough to have an opinion but that is sort of the other side of the coin as far as I understand it.
     
  7. Aprax

    Aprax Active Member

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    The world stands behind Ukraine even if Russia is stronger. A couple of weeks ago, they put a luxury ban on Russian products like fur and some other stuff. It'll hurt Russia more than the Ukraine.
     
  8. Leeroy_MY

    Leeroy_MY Well-Known Member

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    1) The country did not descent into 'lawlessness'. In fact, have the russian army even managed to help? The only thing that was achieved by their arrival was escalating violence. 'To protect Russian citizens' was only a ploy by Putin to employ troops to protect Russian interests in Ukraine.

    2) The letter asking for help from Russia was written by the ousted Moscow-friendly prime minister, Viktor Yanukovych not the 'Russians' living in Ukraine.

    3) If Putin was really concerned about the safety of the Russian speaking populace of Ukraine that are being discriminated against, he would have evacuated them to safety in Russia instead of strategically planting his army in Crimea and giving terrorist cells weapons to 'fight for their freedom'.
     
  9. nashvilleshelby

    nashvilleshelby Active Member

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    Wow, I wonder what the next plan of attack will be. And, the agenda of the unscheduled meeting. This is going to be interesting to say the least.
     
    Last edited by a moderator: Jul 8, 2016
  10. uggonen

    uggonen Well-Known Member

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    Atleast Finland is not hit by it. I heard that Russian stocks are going crazy because of that... And no wonder :D
     

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