Too much speculation in the market right now about sanctions on Russia from not only America but possibly Europe. Europe has been reluctant thus far to impose sanctions on Russia since the Ukraine crisis, but the recent tragedy of MH17 could be the necessary wakeup call.
"The new U.S. measures target two banks, two energy companies, eight arms firms, a shipping facility and various Ukraine separatists....Russia's economy has been struggling over the last few months. It was already slowing before the Ukraine crisis began, and sanctions have made the outlook even weaker. The International Monetary Fund forecast in late April that growth would slump to just 0.2% this year, down from 1.3% in 2013."
Source: money.cnn.com/2014/0...s-markets/index.html
Note also RSK was just recently downgraded by JP Morgan from overweight to underweight this Friday and I expect other analysts to follow up with downgrades the following week.
"The new U.S. measures target two banks, two energy companies, eight arms firms, a shipping facility and various Ukraine separatists....Russia's economy has been struggling over the last few months. It was already slowing before the Ukraine crisis began, and sanctions have made the outlook even weaker. The International Monetary Fund forecast in late April that growth would slump to just 0.2% this year, down from 1.3% in 2013."
Source: money.cnn.com/2014/0...s-markets/index.html
Note also RSK was just recently downgraded by JP Morgan from overweight to underweight this Friday and I expect other analysts to follow up with downgrades the following week.