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Goldman Sachs strategists based their calculations on the sensitivity of global assets to the ruble. They calculated that a 10% depreciation of the ruble would result in a 13% increase in oil prices in the worst-case scenario. Furthermore, in the most pessimistic scenario, European and Japanese stocks would lose roughly 9%, and the euro would lose 2% against the dollar.
Traders were actively selling equities and buying bonds in an attempt to mitigate risks as tensions in Donbass grew. "Tensions between Russia and Ukraine primarily hurt local assets in January, but their impacts began to undermine global markets in February," Goldman Sachs analysts noted. They pointed out that if there was an open military conflict, economic risks would rise.
The ruble would appreciate, US stocks would climb by around 6%, and bond yields would rise if tensions were to de-escalate, according to the bank's strategists.
source: bloomberg.com
Traders were actively selling equities and buying bonds in an attempt to mitigate risks as tensions in Donbass grew. "Tensions between Russia and Ukraine primarily hurt local assets in January, but their impacts began to undermine global markets in February," Goldman Sachs analysts noted. They pointed out that if there was an open military conflict, economic risks would rise.
The ruble would appreciate, US stocks would climb by around 6%, and bond yields would rise if tensions were to de-escalate, according to the bank's strategists.
source: bloomberg.com