JPMorgan Goes From Sell to Buy and Back on Russia - Bloomberg

JPMorgan Goes From Sell to Buy and Back on Russia - Bloomberg:



"Just a month after lifting its call on Russia stocks to buy, JPMorgan Chase & Co. reversed course, telling investors to sell as the market plunged after the U.S. imposed more sanctions and an attack on a civilian jet deepened tensions in Ukraine.



The flip-flop highlights how volatile markets have become in a country that’s been mired in a conflict in neighboring Ukraine for months. The Russian Market Volatility Index, which reflects traders’ projections for future price swings in equities, jumped 9.9 percent last week to the highest since May 12 as the benchmark Micex index sank to a seven-week low.



In cutting its call, JPMorgan joined Deutsche Bank AG and Barclays Plc turning bearish. Deutsche Bank AG predicted a decline of about 10 percent by year-end while Barclays Plc said stocks could see a correction. JPMorgan’s analysts led by Adrian Mowat said they reduced Russian stocks to underweight, the equivalent of sell, on heightened international tension, stronger sanctions linked to the Ukraine conflict and declining oil prices."



'via Blog this'