Crimea Crisis Batters World’s Stock Markets

[Purveyor]

Source: Bloomberg

Stocks slid, with an index of global equities tumbling the most in a month, while the ruble weakened to an all-time low as Russia’s growing military presence in Ukraine prompted an emerging-market selloff. The yen, U.S. Treasuries and gold rose as investors sought havens.

The MSCI All-Country World Index fell 1.3 percent by 4:06 p.m. in New York. Russian stocks slumped the most in five years and Ukrainian debt dropped the most on record as the ruble retreated more than 1 percent versus its dollar-euro basket. The Standard & Poor’s 500 Index lost 0.7 percent as the VIX volatility gauge jumped. Gold rose 2.2 percent as Brent crude gained as much as 3 percent, while wheat climbed the most since 2012. Ten-year Treasury yields declined to a one-month low.

U.S. Secretary of State John Kerry is traveling to Ukraine and the United Nations Security Council is set to meet as western leaders seek to respond to Russia seizing control of the country’s Crimea region. Ukraine said Russia’s navy ordered two of its ships to surrender. Russia’s central bank unexpectedly raised its key interest rate by 150 basis points. Manufacturing gauges in China signaled slower growth, while a U.S. data showed faster-than-estimated factory expansion.

“The Ukraine is troubling, but it will be short-term,” Karyn Cavanaugh, a market strategist at ING U.S. Investment Management in New York, said in a phone interview. Her firm oversees about $200 billion. “If we do see some market gyrations and volatility, it could be a buying opportunity. I think that things are going to be coming along that will cause the market to look past it.”


Read more: http://www.vancouversun.com/business/Crimea+crisis+batters+world+stock+markets/9572938/story.html

[LAGC]

1. I heard the losses today in the Russian stock market and banks totaled $58 billion.

That equals what Putin spent on the Olympics.

The U.N. may not have to do anything, the "invisible hand" of the market may just slap some sense into him after all. Even without any sanctions.

[amandabeech]

2. The rouble lost considerable value.

Imports for the average Russian may become more expensive.

Not even Putin may be able to stand up to an irate grocery shopper confronted with at 50% increase in the price of eggs and sausage.

[penultimate]

3. Vegans wouldn't care much.

[amandabeech]

4. My experience with people who have recently left Russia and the former Soviet Union

is that there are very few vegans among them.

Not that there's anything wrong with vegans.

[davidpdx]

5. According to the vocal minority on DU this was all engineered by the US

It's quite funny that these people don't believe that Russia screwed themselves.