Markets appear on track to reverse Monday's sell-off, with
investors getting confident that the issue was unlikely to
escalate beyond Crimea. President Putin's announcement today of
sending Russian troops in Crimea back into barracks is adding to
the calming effect.
The market's reaction today is in-line with my call yesterday
that the issue will soon blow over. The key point here is the
distinction between Crimea, a historically Russian territory that
is home to the country's Black Sea fleet, and Ukraine proper.
The market's Monday reaction reflected the fear that Russia
would do to Ukraine proper, particularly in the eastern part of
the country, what it had done in Crimea. But escalating the
conflict into Ukraine's borders was going to be problematic for
Russia's business interests, as the country's natural gas exports
to Europe flow through pipelines in Ukraine. Bottom line, Ukraine
remains a geopolitical issue, but investors are looking past it.
To read this article on Zacks.com click here.
In corporate news,
) are in a free fall after the company posted a big loss and
announced reducing its store count by a fifth. Auto parts
) came out with better than expected quarterly results this
) is announcing plans to expand in Europe by adding more
Superchargers, service centers and stores.