Technical & Fundamental Oil Reports Specialists

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Rabbits in the headlights

Published Friday, March 28th, 2014

President Obama tells the world that if Russia continues on its current course sanctions will be increased, its isolation will deepen and there will be more consequences for the Russian economy. He tells Europe “not to ignore the lessons written in the cemeteries of this continent!”

All very aggressive and alarming. It’s a sell. Chancellor Merkel on the other hand says she is not interested in an escalation of tensions with Russia and that the West “has not reached a stage that implies the imposition of economic sanctions”. It’s a buy.

In the face of such conflicting messages it is hardly surprising that stock markets are struggling for direction. They are clearly reluctant to sell off but will not come as a shock if they do. However reluctant Europe may be to sanction Russia, matters may be taken out of their hands by a much more hawkish Obama supported by a Congress that is building up steam.

To read the rest of the report, please click here 

Posted by David Hufton