The Dow Drops as Ukraine's Market Rises
Investors spent the day digesting a whistleblower report that raised questions about the appropriateness of a conversation between President Donald Trump and Ukraine’s President Volodymyr Zelensky.
The Ukraine stock market is beating the Dow this week, when both countries are in the news.
The Dow Jones Industrial Average traded lower on Thursday, closing down 0.3%.
Investors spent the day digesting a whistleblower report that raised questions about the appropriateness of a conversation between President Donald Trump and Ukraine’s President Volodymyr Zelensky. In the phone call between the two world leaders, Mr. Trump pressed Ukrainian Mr. Zelensky to investigate Democratic presidential candidate Joe Biden and his son Hunter. That has led to an impeachment inquiry by House Democrats. The president maintains he has done nothing wrong.
For the week, the Dow is down 0.2%. The Ukraine stock market, on the other hand, is having a better week. The Ukraine PFTS Index rose 0.3% Thursday, its third straight daily gain and is up 0.5% for the week.
Apparently, it’s always nice to be talked about.
Of course, the Ukraine index has only seven stocks, with an aggregate market capitalization of $1.7 billion. The Dow has 30 stocks, with an aggregate market value of more than $7.5 trillion. It is difficult for global investors to find a market as deep and as tradable as U.S. equities.
For the year, the Ukraine index is down about 4%. The PFTS Index is actually up about 9% in U.S. dollar terms. Ukraine’s currency, the Hryvnia, has strengthened by about 15% against the dollar in 2019. Still, that is short of the 17% gain of the Dow over the same span.
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