Russian-Ukrainian conflict in the limelight
Economists at Deutsche Bank expect to see new developments in the Russian-Ukrainian crisis today with the EU finance ministers holding a meeting to discuss a possibility of imposing new sanctions on Russia. At least, the US president Obama urges the European government to do so. Meanwhile, Kremlin is denying responsibility for the Malaysian plane crash in Donetsk.
"There is a real possibility of a ratcheting up of sanctions on Russia later this week – including possibly more hard-hitting “level 3” sanctions. The US may find it economically easier to deal with this outcome than Europe though."
"Perhaps the most market-friendly outcome is that EU leaders talk very tough but do not agree on intensifying sanctions against Russia", Deutsche Bank says. According to Reuters sources, despite all the tough talk, the EU is unlikely to punish Russia beyond the speeding up of the imposition of already agreed individual sanctions.