Russian Market Adapts to the New World Order of Weak West

Posted on April 30th, 2014 by admin in Geo-Politics, Market Indexes

We won’t add to the resounding chorus of bloggers and pundits correctly claiming that B. Obama and His EU cohorts have issued empty threats and weak responses and thus have lost credibility with V. Putin . While the Obama  administration says its sanctions are targeted and prudent, they also say the Russian markets have taken a significant hit. That claim about the Russian stock market is partially true. If we use the RSX index (the Market Vectors Russia ETF) as a proxy for the Russian stock market, we see below that the RSX dropped substantially as surprises occurred in Ukraine and as threats were issued. But after those first events (A through E as shown), the RSX seems to have stabilized at a lower level.

RSX vs Ukraine events

RSX showing prices marked by events in the Russia- West conflict; click to expand.







The events shown on the RSX plot are stated in this list:

Ukraine Event Log Events compiled by Reuters: Gabriela Baczynska, Pavel Polityuk and Raissa Kasolowsky














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