4 Mar 2014
Russian stocks rebound after Putin recalls troops to base
FXStreet (Łódź) - Following Russian President Vladimir Putin's decision on Tuesday morning to recall troops on military exercises from the Western borders, the ruble strengthened after hitting a historic low yesterday and stocks in Moscow surged.
The MICEX stock index initially jumped 5%, settling later at 4%. The ruble rose 0.8% to 36.2 rubles against the dollar. Oil and gold also came off yesterday's highs.
Meanwhile, US secretary of state John Kerry will travel to Kiev today in order to hold talks with the new Ukrainian authorities on ways of handling the conflict with Russia.
In the opinion of Deutsche Bank analyst Jim Reid: “There are significant doubts about whether the West could agree on meaningful economic sanctions, not least given Europe’s reliance on Russian energy.”
“Even without sanctions, a more isolated Russia will likely compound already low investment levels and a diminished growth outlook on long-standing lack of reforms (both economic and institutional).”
The MICEX stock index initially jumped 5%, settling later at 4%. The ruble rose 0.8% to 36.2 rubles against the dollar. Oil and gold also came off yesterday's highs.
Meanwhile, US secretary of state John Kerry will travel to Kiev today in order to hold talks with the new Ukrainian authorities on ways of handling the conflict with Russia.
In the opinion of Deutsche Bank analyst Jim Reid: “There are significant doubts about whether the West could agree on meaningful economic sanctions, not least given Europe’s reliance on Russian energy.”
“Even without sanctions, a more isolated Russia will likely compound already low investment levels and a diminished growth outlook on long-standing lack of reforms (both economic and institutional).”