It`s all up and green in Europe today. We see a cautious rally after Crimea vote. The opening in U.S today will be mixed, but it can change later on today. Obama spoke to Putin after the vote, and Putin pointed that the vote is legal.
(picture: Mosow city)
The U.S and EU warn Russia against moving to annex Crimea, and today mull sanctions. Gold is declining to $1378,60. I think this is some profit-taking pressure from recent gains that saw prices hit a six-month high overnight.
The vote in Crimea should not be a big surprise. The Russian parliament said it would move fast to annex the Crimean region. Any escalation of tensions in Ukraine would quickly put risk-aversion back into the markets.
Now, we should look for the possible sanctions against Russia. If the U.S and EU slap Russia`s hands with diplomatic and economic sanctions, we will see the Russian stock market in a big drop. We saw the stock market in Russia plummeted earlier with a drop of -20% in on single day.
That was more expensive than the Olympic Games in Sotsji. Not good for a company that went bankrupt in 1998. The economy is the eight largest economy in the world. They have an abundance of natural resources, including timber, precious metals, and particularly fossil fuels (oil, natural gas and coal) that can be developed without the constraint of OPEC production quotas and other rules.
Russia in not a OPEC member. Russia`s oil and gas production have been not only a primary source of Russia`s economic growth but also a geostrategic lever in the country`s relationship with Europe and Asia.
Russia has undergone significant changes since their collapse in 1998. They have moved from a centrally planned economy to a more market-based and globally integrated economy. The economy is more privatized in many sectors now.
Russia`s capital, Moscow, had the highest number of billionaires of any city in the world, and the Russian government predicts growth rates for future years at 2,5% of GDP. Putin and his friends are often criticized for their «loan-for-shares» scheme that turned over major state-owned firms to politically connected «oligarchs» has left equity ownership highly concentrated.
It`s a big country and it all collapsed and went bankrupt in 1998. As we all know, U.S is also a big country, with a lot of problems. Do people around the world really know how serious the problems in the U.S is? I hope so, because everyone should be prepared and protect themselves.
Reports today:
| 08:30 AM ET | Empire State Manufacturing Index |
| 09:15 AM ET | Capacity Utilization Rate |
| 09:15 AM ET | Industrial Production m/m |
| 10:00 AM ET | NAHB Housing Market Index |
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Ket Garden
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