Russia's near-mutiny just cratered its currency against the dollar
Good morning to my favorite corner of the internet. Phil Rosen here, writing to you from a cafe in midtown New York.
The near-mutiny in Russia this weekend had some unexpected consequences for currencies — more on that below.
And as a reminder, some news: This is the last week of 10 Things Before the Opening Bell. You'll still be able to get our latest markets news directly in your inboxes via our flagship newsletter, Insider Today, which will be revamped in the next few weeks. Sign up here.
Of course, you can also download our app and sign up for markets notifications.
GAVRIIL GRIGOROV/SPUTNIK/AFP via Getty Images
1. It's unclear just how close things came to boiling over with the rebellion in Russia this weekend, but Yevgeny Prigozhin's decision to call off the Wagner Group's mutiny likely prevented widespread market chaos.
And yet — the Russian ruble still plunged 3% to a 15-month low on Monday, trading at one point near 87 per dollar.
As a recap: Prigozhin ordered his paramilitary company to march on Moscow on Saturday after claiming the Russian military bombed his men in Ukraine.
Then, just hours away from the capital, the warlord and his troops did a U-turn in an effort to avoid further conflict:
"Our decision to turn around came from two important factors," Prigozhin said in a voice recording. "The first was that we did not want to spill Russian blood. The second, we were marching to demonstrate our protest, not to unseat the government."
Still, it wasn't quite "crisis averted" for markets.
The Kremlin said there was a huge uptick in foreign currency demand across 15 regions in Russia, per Reuters.
Here's how First Deputy Prime Minister, Andrei Belousov, put it:
"On average, it was about 30%, but most active growth in demand for cash was recorded in southern regions — in Voronezh, Rostov, and Lipetsk, as well as in large cities. Demand there increased by about 70-80%."
During the mutiny, Russian banks had cut their ruble exchange rates to over 100 per dollar, though they've since eased prices.
And, as the Wall Street Journal reported, there were also instances of the ruble being exchanged for the crypto stablecoin tether.
Mr. Putin hasn't yet commented publicly on the matter, but it's possible that whatever he says sways markets once more — stay tuned.
What's your outlook for the Russian ruble by year-end? Tweet me (@philrosenn) or email me (prosen@insider.com) to let me know.
In other news:
Spencer Platt/Getty Images
2. US stock futures rise early Tuesday, as investors brace for economic data that includes home sales, durable goods, and consumer confidence, all due this morning. Check out the latest market moves.
3. Earnings on deck: Manchester United, Walgreens Boots Alliance Inc, and more, all reporting.
4. Morgan Stanley strategists just named five stocks they believe are positioned to reap the rewards of the AI boom. Information technology firms could see a boost as use cases for AI increase. See their favorite names.
5. Billionaire Ron Baron said inflation will propel major stock gains for the coming decades. He projected that the Dow could soar to over 900,000 within the next 50 years — but everything will get "twice as expensive."
6. China's economic recovery is still stuck in first gear. DataTrek strategists pointed out that pollution readings show that the air quality over major cities is cleaner than it was before the pandemic: "While the government has started to provide economic stimulus, we do not yet see any concrete proof it is having the desired effect."
7. Warren Buffett's global market gauge just soared to nearly 110%. That suggests stocks are overvalued and a crash could be coming. The billionaire has previously cautioned that a spike in the indicator stands as a "very strong warning signal" for equities.
8. Forget about a housing crash. Top researchers from Harvard said there's little chance of a 2000s-style drop in home prices anytime soon. Full details.
9. This batch of stocks could lead the surging AI networking market into a $10 billion opportunity by 2027. Bank of America analysts anticipate a spike in demand for certain hardware as big-tech cloud providers begin to integrate generative AI — and these are the three stocks that could see the biggest upside.
Markets Insider
10. Goldman Sachs just downgraded Tesla stock. Elon Musk's company has rallied more than 100% this year, but the Wall Street firm said its "valuation is full," knocking its rating down to "neutral." Dig into the numbers.
Curated by Phil Rosen in New York. Feedback or tips? Tweet @philrosenn or email prosen@insider.com.
Edited by Max Adams (@maxradams) in New York and Hallam Bullock (@hallam_bullock) in London.
from Business Insider https://ift.tt/rb6TAFp
via IFTTT
Comments
Post a Comment