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Russia turmoil to fuel market volatility, flight to safety

Published

2 years ago

June 24, 2023

Russia turmoil to fuel market volatility, flight to safety

[1/5]Fighters of Wagner private mercenary group stand on a tank outside a local circus near the headquarters of the Southern Military District in the city of Rostov-on-Don, Russia, June 24, 2023. REUTERS/Stringer

June 24 (Reuters) – Mutinous Russian mercenary fighters barrelled towards Moscow on Saturday after seizing a southern city overnight, with Russia’s military firing on them from the air but seemingly incapable of slowing their lightning advance.

Here are reactions from investors and analysts to the news:

STEVE SOSNICK, CHIEF STRATEGIST AT INTERACTIVE BROKERS:

“This is a truly exogenous event that leads to initial shock and a flight to safety. It should awaken VIX from its stupor. First move is likely to be a bump in government bond prices (lower yields) and USD. Riskier assets tend to decline. The question is how much and how lasting the reaction will be, much of which depends upon unknowable developments.”

“Even with Russian embargoes, they still sell plenty of raw materials to sympathetic nations like China and matter to the global supply. It is reasonable to expect oil and other key commodity prices to rise. If oil prices rise sharply, that will indeed weigh upon equities and reignite stagflation fears. Gold is tough to read. In theory it should benefit from a flight to safety, but in practice a strong dollar can impede it.”

“U.S. treasuries should rise on the safety trade.”

“With Russia largely disconnected from the global economy, few U.S. or European companies will have direct impacts from instability in a country that’s already a pariah. So the broader markets will take their cues from bonds and commodities. Defense-related stocks should catch a bid – the world is not a safer place today – and commodity-linked stocks should also be outperformers for the reasons stated above.”

MICHAEL PURVES, CEO AT TALLBACKEN CAPITAL ADVISORS:

“Certain parts of the stock market have been flying really high, we do know that’s largely been driven by P/E expansion rather than earnings and this might give people an excuse to sell.”

“These types of geopolitical shocks are often short lived and usually don’t have much impact on the U.S. stock market but this time it may because stocks have run up so high.”

“Any time you have these kinds of political disturbances in a commodity nation you at least expect a short term shock to the prices of the commodities produced there.”

“We should start seeing classic risk off dynamics on Sunday night such as global equity futures lower, crude oil higher, treasury prices higher.”

DAVID KOTOK, CHIEF INVESTMENT OFFICER AT CUMBERLAND ADVISORS IN SARASOTA, FLORIDA:

“This is a potential civil war in Russia. Important implications as Putin is already weakened by events and now faces existential threat as does his antagonist.”

“Turmoil effects include the price and availability of Russian energy. Geopolitical impact on Russian alliances like Belarus and nearby countries in Soviet sphere. In EU what does Hungary (Orban) or NATO ally Turkey do.

“Regardless of the outcome, this is already a very big deal.

“Initial market reaction will be driven by news reports and by any concrete events. That is usually true of most rapidly changing event sequences. The strategic damage is already done. Every capital in the Russian alliance of countries and in the adversaries’ alliance and in the neutral alliance is rethinking the relationship with Putin.”

GEORGE BOUBOURAS, HEAD OF RESEARCH AT K2 ASSET MANAGEMENT IN MELBOURNE:

“Current reported Russian events are not helpful. It’s very concerning for the complex geopolitical global landscape and any uncertainty will obviously impact markets.”

“Higher vol lies ahead. However fundamentals will eventually resurface. That is, economies in developed markets remain resilient & central banks concerns’ with stubborn inflation creates many challenges as rates need to go higher & remain higher for longer.”

JAMIE HALSE, WHO MANAGES AN A$500 BILLION JAPAN-FOCUSED FUND AT PLATINUM ASSET MANAGEMENT IN SYDNEY: “If Putin removed, pure speculation and a hypothetical on my part, troops withdrawn from Ukraine and peace deal agreed, then that would be bullish for Russian-exposed businesses, Eastern Europe stocks, probably Chinese stocks by implication. Bearish energy, resources and defense stocks. “Probably bearish Indian stocks too as the dividend they’ve received from cheap Russian oil likely disappears. “On the other hand, civil war, especially if prolonged, in a major nuclear armed nation should make anyone uncomfortable…(though) we don’t really know what’s going on at this point. Civil war may be too long a bow to draw.”

Reporting by Tom Westbrook in Singapore, Megan Davies, Carolina Mandl and Ira Iosebashvili in New York; Writing by Lananh Nguyen; Editing by Daniel Wallis

Our Standards: The Thomson Reuters Trust Principles.

Related Topics:AMERS asia ASXPAC BISV BISV08 BNK BNKS BNKS1 BSVC CDTY CEEU CISC COM CWP DBT EMRG ENER ENFF ENG ENR EUROP Featured FIN FINS FINS08 GEN HLGT NAMER NASIA NRG RU STX UA us War

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Italian state railways plans 1.3 bln euro investment in solar plant

Published

5 hours ago

December 22, 2024

Press Room

Italian state railways plans 1.3 bln euro investment in solar plant

Italian state railways Ferrovie dello Stato plans to invest 1.3 billion euros ($1.36 billion) in a photovoltaic plant with an initial 1 gigawatt (GW) capacity that would cover 19% of its energy needs by 2029, the CEO said in a newspaper interview.

World

Christmas in Puerto Rico is a 45-day celebration with caroling, festive decorations, family feasts and more

Published

6 hours ago

December 22, 2024

Press Room

Christmas in Puerto Rico is a 45-day celebration with caroling, festive decorations, family feasts and more

Christmas, Navidad in Puerto Rico, extends far beyond Dec. 25.

The island proudly proclaims itself as having the “longest holiday season in the world,” according to the website Discover Puerto Rico.

On average, the holiday festivities in Puerto Rico last about 45 days, per the source, commencing right after Thanksgiving, and stretching all the way through mid-January.

The Christmas season in Puerto Rico typically lasts around 45 days. (iStock)

HOW TO SAY ‘MERRY CHRISTMAS’ IN 10 LANGUAGES TO FRIENDS AROUND THE WORLD

The holiday season in Puerto Rico is full of rich traditions beloved by families.

One tradition those who visit Puerto Rico will immediately notice during the holiday season is decorations.

In Puerto Rico, decorations are typically put up by Thanksgiving, and kept up until the season concludes in mid-January, with opportune picture moments at every corner.

Parrandas, Christmas caroling, is a holiday staple.

17 SECRET TRAVEL TIPS FOR FALL AND WINTER THAT AREN’T SO SECRET AFTER ALL

Carolers choose houses of family and friends to visit, typically starting around 10 p.m., performing aguinaldos (traditional Christmas songs), with not only their voices, but often with instruments as well, according to Discover Puerto Rico.

The group you begin caroling with is likely not the same group you end with.

In Puerto Rico, when carolers visit a house, they’ll often stop inside for conversation, food and drink before moving to the next residence.

Coquito is a popular beverage enjoyed during the holiday season in Puerto Rico. Coconut, vanilla and rum are among the ingredients. (Mayra Beltran/Houston Chronicle via Getty Images)

Usually, the residences of the house visited will join the group for the next house, according to Discover Puerto Rico.

CHRISTMAS TREES IN GERMANY WERE DECORATED WITH APPLES INSTEAD OF ORNAMENTS IN THE 1600S FOR ‘ADAM AND EVE DAY’

A night of serenading loved ones can last quite a while, often stretching into the early morning hours of the following day, according to the source.

The biggest day of the holiday season in Puerto Rico actually isn’t Christmas, but instead, the night before.

In Puerto Rico, Dec. 24 is Nochebuena. On that day, loved ones gather for the exchange of gifts, caroling and a large feast.

Many families will also attend a midnight Mass on the day, known as Misa de Gallo.

FLIGHT ATTENDANTS REVEAL THE SURPRISING DAY TO TRAVEL AHEAD OF THE CHRISTMAS RUSH

After Christmas passes, the festivities go on in Puerto Rico.

Another big event in the holiday lineup is Three Kings Day on Jan. 6, a holiday that “commemorates the visit that the Three Wise Men paid to Jesus after his birth,” according to Discover Puerto Rico.

On the eve of the day, children fill up a shoebox with grass to be left for camels to munch on while the Three Kings leave behind gifts for them, according to PuertoRico.com.

For a particularly festive Three Kings Day, Juana Díaz is the place to go, as it hosts the largest celebration in Puerto Rico for the holiday. In Juana Díaz, there is an annual festival and parade in honor of Three Kings Day that brings together over 25,000 people every year, according to Discover Puerto Rico.

Gifts are primarily exchanged between loved ones on Christmas Eve in Puerto Rico. (iStock)

Then, eight days later is Octavitas, a post-holiday celebration where families get together and celebrate one last time for the season.

The end of the holiday season is marked with the San Sebastián Street Festival.

This festival, spanning over multiple days, takes place in Old San Juan, and is filled with live music, dancing, shopping and parades.

Ashlyn Messier is a writer for Fox News Digital.

World

Small plane crashes into Brazil town popular with tourists, killing 10

Published

7 hours ago

December 22, 2024

Press Room

Small plane crashes into Brazil town popular with tourists, killing 10

Twin-engine plane crashed in largely residential neighborhood of Gramado shortly after takeoff, authorities say.

A small plane has crashed into a tourist hotspot in southern Brazil, killing all 10 people on board and injuring more than a dozen people on the ground, officials have said.

The twin-engine Piper PA-42-1000 hit the chimney of a home and the second floor of a different house before crashing into a shop in a largely residential neighbourhood of Gramado shortly after takeoff from Canela, Brazil’s Civil Defense agency said on Sunday.

Rio Grande do Sul Governor Eduardo Leite told a news conference that the aircraft’s owner and pilot, Luiz Claudio Galeazzi, was killed along with nine members of his family.

Leite said that 17 people on the ground were injured, 12 of whom were still receiving treatment in hospital.

Galeazzi’s company, Galeazzi & Associados, confirmed that its CEO and Galeazzi’s wife and three daughters had died in the crash.

“Luiz Galeazzi will be forever remembered for his dedication to his family and for his remarkable career as a leader of Galeazzi & Associados,” the company said in a post on LinkedIn.

“In this moment of immense pain, Galeazzi & Associados is deeply grateful for the expressions of solidarity and affection received from friends, colleagues and the community. We also sympathize with all those affected by the accident in the region.”

Gramado, located in the Serra Gaucha mountains, is a popular destination for vacationers, especially during the Christmas season.

The crash comes a little more than a year after Brazil suffered its worst air disaster in nearly two decades when a twin-engine plane crashed in the southeastern city of Vinhedo, killing all 62 people on board.