JPMorgan Joins Russia Bulls After Rally as Risks Fade - Bloomberg:
"Russian stocks have been so volatile amid the turmoil in Ukraine that it took a bull market to convince JPMorgan Chase & Co. that it’s time to buy.
The bank’s upgrade from sell yesterday follows a 21 percent advance in the benchmark Micex Index (INDEXCF) from its bear-market low in March. Stocks are rallying as President Vladimir Putin signals that he’s willing to work with Ukraine’s new leader, reducing concern that Russia will face more sanctions. Bank of America Corp., which has had a buy rating on Russian stocks since September, reiterated its bullish view on June 17. Deutsche Bank AG strategist John-Paul Smith predicted a rebound six weeks ago.
“The two key catalysts are the fading of the Ukraine crisis and the shift in positioning,” JPMorgan analysts including David Aserkoff and Christian Kern wrote in a report on June 18. “Global emerging-market funds are underweight for the first time since 2009. The emerging-market value trade seems to be working, which should benefit Russia"
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