European stocks are falling again, but not collapsing... The UK’s FTSE 100 index has followed the rest of Europe and is now trading 11 points, or 0.15%, lower at 7,447, giving up earlier modest gains.
Germany’s Dax has lost 1% while France’s CAC and Italy’s FTSE MiB are 0.7% and 0.9% lower respectively.
Russia exposed stocks more mixed this morning: Polymetal, JPMorgan Russian Securities and Petropavlosk all lower again, whilst Evraz and Ferrexpo rallied a bit. The rouble has come off its lows and trades around 91 to the US dollar. At the moment it looks as though the Russian central bank is doing a not terrible job of supporting the currency, but through some pretty tough measures – massive rate hike and capital controls. How long can this last? First Switzerland and now even Monaco is kicking out Russian money!
As for Russia and Ukraine....the dreadful situation gets worse as heavy shelling of built-up areas shows us what is to come. Talks yesterday didn’t get far but the two sides have agreed to try again as a massive Russian convoy starts to encircle Kyiv. Bombing of civilians will harden Western public opinion against Russia – voters are already taking a pretty hard line across Europe. Unified public opinion complicates matters for governments who might prefer to base policy solely on the advice of their military intelligence and strategic advisors. But that is the way of things.
We think there is a clear financial as well as a moral case for divestment with respect to our Russian holdings.
Morals drive finance and if you are a financial investor and you don’t think about the moral impacts of what you are doing you are both shortsighted and, dare I say it, immoral.
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