After opening lower and falling until mid-morning, stock
prices are now rising, having come within 0.1% of breakeven on
the NASDAQ and 0.2% of breakeven on the S&P 500. On a day
when beyond-the-market news has dominated market trading, the
reason appears to be the growing number of voices from around the
world echoing the sentiments of the US over the downing of
Malaysian Airlines Flight 17 over Eastern
on Thursday of last week.
That position was expressed in no uncertain terms by Secretary
of State John Kerry, as he made the rounds on the Sunday talk
shows: "The president imposed a greater cost on Vladimir Putin
the day before this shoot-down took place, and what we are doing
now is trying to bring our European counterparts along." That may
become easier in the coming days, as shock in the Netherlands
turns to rage, as it invariably does in situations such as this.
At least 173 of the 298 victims were Dutch nationals.
Despite strong trading ties with Russia, it appears
increasingly likely that Europe will now follow the U.S. in
implementing sanctions against Russia. As for Russia,
Bloomberg is reporting
that Russia's richest businessmen are in "horror" at the risk of
isolation Putin is incurring. By early afternoon on Monday,
Russia's defenders were down to Putin,
. The market is likely responding happily to the generally
anti-Russian world mood as it means that the next round of
sanctions against Russia will not necessarily come from America.
If Europe shares the economic burden of sanctions, it will be
better for US companies.
Putin spoke about the crash on Sunday, in a video on the
Kremlin's website saying, "Nobody should and no one has the right
to use this tragedy to achieve selfish political aims. Such
events should unite, not divide people." Putin's remarks have not
been warmly received.
has been a business writer since the first day of the
twenty-first century, having written for PRA
International and the United Nations Department of
Peacekeeping. He graduated from Davidson College in 1993
and received a Master of Arts in Teaching from Mary
Baldwin College in 2011. He became a stockbroker in 1993,
but now works for Fresh Brewed Media and uses his powers
only for good. You can see closing trades for all
Julian's long and short positions and track his long term
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