As the US and EU press forward with sanctions – proclaiming them as the first step in punishing economic actions – the world’s stock markets could not be happier. European stocks are up over 1% – their best day in 6 weeks; Germany – notably hard-hit on the basis of its gas-dependence – is surging by the 2nd most this year as Italian stocks rally a ridiculous 2.4% (its 2nd best day in 7 months). Everyone loves a good short-squeeze on war escalation but we suspect the surge in Russian stocks – up 8.5% from Friday lows – (and the Ruble) will be disappointing more than a few of the world’s great thinkers in Washington and Brussels.
European Stocks surge…
Led by a huge short squeeze as sanctions were announced (led by Italian stocks of course!!)
But – Russian stocks are roaring – up 8.6% from Friday’s lows… not exactly what the politicians were hoping for…
This is the biggest 2-day swing in 18 months for Russian stocks – imagine how much higher it will go when the US reallt gets going on sanctions.