Bloomberg: Markets Plan Doomsday Scenarios If Russia Turns Off the Gas
* Strategists lay out worst-case scenarios for stocks and bonds
* Europe is caught in a ‘vicious circle,’ says Banque Syz CIO
(Bloomberg) -- European stocks plunging 20%. Junk credit spreads widening past 2020 crisis levels. The euro sinking to just 90 cents.
The predictions are ominous for financial markets if Russia cuts off all the gas supply to Europe.
Shipments are currently running at reduced levels with the main pipeline shut for a 10-day maintenance, and fears are building over whether Moscow will turn the tap back on. Many investors are asking: How bad could this get?
To that question, strategists across Wall Street have tried to put numbers on a scenario that would be unthinkable in normal times. There are so many variables, such as the length of any shutdown, the extent of supply cuts, and how far countries would go to ration energy, that anyone’s prediction is a guess at best.
Read more ....
WNU Editor: A Russian natural gas cut-off will be a disaster for Europe, and its impact will be felt globally.
No comments:
Post a Comment