Last week was rather dramatic for stock markets across the world. Indices of the leading western platforms lost at least two percent over the previous week. Weekly changes of indices on trading platforms in developing countries were even more substantial. A high likelihood that the Russian Federation will begin open hostilities on the territory of Ukraine, as well as a possibility that the leading western countries will impose economic sanctions against Russian destabilized western markets.

An additional negative factor was China’s economic indicators, which turned out to be much worse than expected over the first two months of 2014. In particular, China’s exports in February registered a record-low drop over the last five years. Forecasts for growth of China’s industrial output over January-February also did not come true.

The Russian-Ukrainian conflict will continue to be the center of attention for the global investment community during the current week as well. In particular, investors will watch closely actions of Russia’s political leaders regarding Crimea’s political status, as well as their reaction towards sanctions imposed by western countries.

Financial markets survey 17.03.2014