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4 Mar 2014
Flash: Ukraine; significant market impacts - Rabobank
FXStreet (Guatemala) - Analysts at Rabobank explained and said, “When demonstrators flooded the street of Kiev in December to protest against the President’s spurning of a deal which would have brought closer ties to the EU, there was no speculation that events would escalate to the point that the US was considering sanctions on Russia as a result of the decision by Russia’s parliament to send troops into Ukraine to protect its interests”.
Key Quotes:
“The world now faces a new round of geopolitical tension with potentially very high stakes. The tension and uncertainties surrounding Ukraine have already had a significant market impact”.
“Even though Europe has significant gas inventories after a warm winter, gas futures are priced higher this morning on concerns about the impact on Russian supplies to Europe. Brent oil has also rallied and grains are also feeling an impact. This morning corn prices are reported to be at their highest levels since September while wheat has pushed back to August levels”.
“Ukraine had been expected to potentially be the world’s third largest corn shipper this year. However, due to the impact of the sharply lower currency, Ukrainian suppliers have already been showing signs of slowing down sales on the hope of a recovery in the exchange rate”.
“In what time frame that now happens now depends on when crucial economic aid can be agreed for the country but also how the politics evolves in the next few weeks”.
Key Quotes:
“The world now faces a new round of geopolitical tension with potentially very high stakes. The tension and uncertainties surrounding Ukraine have already had a significant market impact”.
“Even though Europe has significant gas inventories after a warm winter, gas futures are priced higher this morning on concerns about the impact on Russian supplies to Europe. Brent oil has also rallied and grains are also feeling an impact. This morning corn prices are reported to be at their highest levels since September while wheat has pushed back to August levels”.
“Ukraine had been expected to potentially be the world’s third largest corn shipper this year. However, due to the impact of the sharply lower currency, Ukrainian suppliers have already been showing signs of slowing down sales on the hope of a recovery in the exchange rate”.
“In what time frame that now happens now depends on when crucial economic aid can be agreed for the country but also how the politics evolves in the next few weeks”.