“The Italian economy shrank in the second quarter, taking economists by surprise and provoking concern that violence in Ukraine and tension with Russia could be pushing the eurozone back into recession. Gross domestic product contracted 0.2 per cent from April through June, compared with the first quarter of 2014, Istat, the Italian statistics office, said in a preliminary estimate. It was the second quarterly decline in a row for Italy, meeting the most common definition of a recession. In the first quarter, output shrank 0.1 per cent compared with the previous quarter. The decline dashed hopes that Italy was finally emerging from a decade of stagnation. Along with a report of a sharp decline in German factory orders, it raised questions about the health of the eurozone as a whole. Russia is an important trading partner for Europe. In addition, fear and uncertainty created by the Ukraine crisis could discourage individuals and businesses from spending, also hurting growth. The currency area has still not returned to the same levels of employment and economic output it had before the financial crisis began in 2008. Some economists argue that the region is already well into a so-called lost decade. Separately, the German Federal Statistical Office reported Wednesday that new industrial orders in Germany fell 3.2 per cent in June compared with May. Analysts had expected orders to increase. Germany has the largest economy in Europe and is a crucial market for other eurozone countries, so any slowdown there is ominous for the rest of the Continent."
My thoughts are that Russia will invade and annex eastern Ukraine........ putin has never been so popular (in russia), and there is nothing like a war to stir up nationalistic fervour......
That the Russian bourse is down 10% does not matter.
Russia’, the worlds 9th. Largest economy and the effects of its trade with the eurozone,the world’s second largest economy, has to have some effects on the world economy world markets.......
How much ??......i don’t know, but others might have some thoughts on this...... it does raise some questions in my mind about taking further long positions though....... and maybe it will cause the US markets to hesitate or extend the current little correction a bit further
