The world’s financial markets are showing some signs of stabilising after falling dramatically following the shooting down of an airliner on the Ukraine Russia border.
Asian markets were particularly turbulent, as investors sold shares in what some analysts said was an overreaction to the news though there are still worries about the Ukraine situation.
Even the Moscow stock markets, which took another big hit early on, trimmed some of their losses during the afternoon. The rouble, though still weak, rose in value against the dollar and the euro.
But analyst Fidel Helmer with private bank Hauck & Aufhaeuser said the political response would have an impact: “One can assume the West will now impose new sanctions against Russia, and Russia will not accept that and will respond with counter sanctions. And that will hinder trade. And that is an intolerable condition for the markets.”
Some analysts, however, speculated the Malaysian jet tragedy might spur negotiations in Ukraine taking the heat out of the crisis.
Meanwhile European airlines’ shares were lower, though British Airways and Iberia owner IAG was an exception.
Also adding to the geopolitical uncertainty was Israel’s ground campaign into Gaza.