Ukrainian Ceasefire Ends With No Deal Reached

July 2, 2014 Share Print 0

The crisis in Ukraine may have slipped from the headlines briefly, but the increasing risks it poses shouldn’t be far from investors’ minds.
A week-long ceasefire, which ended at 10 p.m. local time on Monday, had offered breathing space for a negotiated settlement of Ukraine’s conflict. After its conclusion, with no solution in sight, “the risk is rising,” analysts at Teneo Intelligence wrote in a research note.

There was a distinctly militaristic tone to new President Petro Poroshenko’s statement late on Monday that: “We will attack and free our lands. The decision not to continue the ceasefire is our answer to terrorists, militants and marauders.”

Russia’s main stock index, the Micex, fell 0.34 percent Tuesday morning, and the ruble fell by 0.7 percent against the dollar. Russian bond sales have slowed to a trickle since the crisis erupted, and a raft of Russian companies is expected to issue new bonds later this year, as debt repayments become due. These may be under threat if the region still looks unstable.

via CNBC

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Alfonso Esparza

Senior Currency Analyst at Market Pulse

Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.