Plunging of Russian Stocks

Discussion in 'General Trading Discussion' started by May102014, Aug 6, 2014.

  1. May102014

    May102014 Well-Known Member

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    It seems even with Putin's threat of retaliation against international sanctions couldn't stop the Russian Stocks from sinking to a 3 month low. I read the Bloomberg Russia US Equity index fell 2.1 to 82.25 in New York yesterday. The latest sanctions targeted the banking and energy industries with financing restrictions and export bans. I don't see Putin leveraging much power as Russia is not consider a powerhouse within the EU. It's almost like watching a leader grasping at straws but I'll give him credit on not caving into pressure as of now. He is still supporting the rebellion in the Ukraine and will not change his position on that.
     
  2. BabyBear

    BabyBear Active Member

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    Why would Putin threatening to retaliate cause Russian stocks to go up? If anything, Putin's bellicosity is cause for a further decline in the Russian stock market as it represents an increase in risk. Stocks hate uncertainty, and Putin is providing it in spades. Also, Russia is NOT in the EU.
     
  3. Wise_Turtle

    Wise_Turtle Guest

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    There are so many factors that will go into determining how effective the Russian retaliation will be. One of which that will be important in the coming months will be the weather. If there is an especially cold winter the rest of Europe will have trouble meeting their requirements for natural gas without a steady supply coming from Russia. This dependence will weaken their options in negotiation. In the long run the US may be able to increase production and export capability. This article goes into some of them. I personally drove past the Sabine Pass project on the way into Port Arthur, it's massive. Time is running against Russia in the long run, but in the short run they may have the advantage depending on the weather.
     
  4. Strykstar

    Strykstar Well-Known Member

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    Russia is definitely playing against the clock here, not only are other countries improving their oil production and processing, the alternative fuel sources are getting more and more improved by the day.
    What's strange is Russia isn't really working on improving themselves, they are just lashing out at everyone.
     

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