Wednesday, December 17, 2014
Well, the oil price drop definitely hurt Russia.
Then, we have the sanctions.
We also have the sharp drop in the Russia's Rubble currency.
HIGHER PRICES FOR EVERYTHING!
The Russians definitely are feeling the pinch now, as they are facing higher prices for everything.
It's more expensive to buy eggs, dairy products, poultry and vegetables now. Apple halted the online store there, just three weeks after an increase in the price of an iPhone 6 for about 25% to 39,990 rubles...even then, the value of that iPhone sales when converted to dollar already has plummeted to about $585 from $847.
The same thing goes to McDonald's. The company increase the price of Big Mac by 2.2% to about 94 rubles....only to see the value drop from $1.77 to $1.35 in the intervening days.
Renault-brand cars have been increased by 8% in Russia.
Now, most Russians believe they have to snap up consumer goods before prices continue to go up.
The ruble yesterday sank beyond 80 per dollar, a record low, before rebounding after Economy Minister Alexei Ulyukayev denied the government would turn to impose restrictions to stop Russians from converting money into dollars.
Posted by Billy Toh at Wednesday, December 17, 2014 as Investment, market, market daily report, Market Watch, News, stock, stock market
There is a sense of relief as FBM KLCI rebound after closing lower for 4 days. It is more of a technical rebound, with the index closed at 1,681.900, increased by 7.96 points.
The technical rebound come as there is sign of stabilization in price of commodities and ringgit.
The rebound is welcomed with a sign of relief after the FBM KLCI Index dropped 35.68 points on Monday (15/12/2014) and another 23.27 points on Tuesday (16/12/2014). The rebound happened as analysts believe the market is in an oversold condition.
On the other hand, the Asian markets were mixed with Japan’s Nikkei rose 0.38%, Hong Kong’s Hang Seng retreated 0.37%, while South Korea’s Kospi fell 0.21%.
The current financial crisis in Russia, and the sharp decrease in the oil price has negatively impacted the market.