Market Commentary: Chinese stocks fall, Ukraine tensions mounting

This week’s market outlook is being determined by mounting tension in Ukraine following detention of international observers by pro-Russian militia groups. The U.S. and the European Union are expected to impose further sanctions on Russia, possibly as early as today.

The new round of sanctions is intended to hit people in Putin’s inner circle. European market have erased gains for the month last week as Russia, apart from being Europe’s major supplier of gas, is also the world leading exporter of nickel; an essential requirement for making steel. Gold also traded higher as the crisis intensified.

The Ruble has lost almost 9% this year against the dollar following strong capital outflows and a credit rating downgrade by Standard & Poor’s. The central bank of Russia appears to be feeling the pressure and raised its key rate to 7.5% last Friday.

Earlier this morning China’s stocks fell amid concerns that a series of expected IPO’s will drain liquidity from the market. Meanwhile, this morning European stocks advanced as pharmaceutical companies reported earnings that beat estimates. AstraZeneca jumped 15% after Pfizer confirmed interest in acquiring the company. Bayer AG also climbed as first-quarter profits beat estimates.

This article was issued by Calamatta Cuschieri, visit www.cc.com.mt for more information.

The information, view and opinions provided in this article is being provided solely for educational and informational purposes and should not be construed as investment advice, advice concerning particular investments or investment decisions, or tax or legal advice. Calamatta Cuschieri & Co. Ltd has not verified and consequently neither warrants the accuracy nor the veracity of any information, views or opinions appearing on this website.