Russia cannot ignore power of the markets
The worldwide markets pronounced their verdict about the increasing tensions in Ukraine on Monday by selling off Russian stocks and the rouble.
The Russian currency dropped to its lowest level in three months, and stocks also lost ground as investors feared a new round of economic sanctions could harm the economy.
“Today with the backdrop of raising concerns and the geopolitical situation we see a drop about the stock exchange of the money indications as well as both rouble. Nov the rouble catalog is several percent, nov the dollar index is as much as two percent,” says the Moscow Exchange’s Nikita Bekasov.
Annual inflation stood at 6.9 percent in March as well as the rouble has damaged all-year, quickening following the Crimea disaster. Food price inflation is running at over ten percent.
“It is obviously associated with the political situation, to the present situation in Ukraine. And how can that effect on us, ordinary people? Costs may increase, wages will stay exactly the same, nothing new,” says one Moscow person.
Though some traders are just starting to imagine that Russian stocks may soon appear too cheap to avoid for traders, with Inflationshowing signs of quickening, Russian customers can get a tough ride.