As the US and EU press forward with sanctions - proclaiming them as the first step in punishing economic actions - the world's stock markets could not be happier. European stocks are up over 1% - their best day in 6 weeks; Germany - notably hard-hit on the basis of its gas-dependence - is surging by the 2nd most this year as Italian stocks rally a ridiculous 2.4% (its 2nd best day in 7 months). Everyone loves a good short-squeeze on war escalation but we suspect the surge in Russian stocks - up 8.5% from Friday lows - (and the Ruble) will be disappointing more than a few of the world's great thinkers in Washington and Brussels.
European Stocks surge...
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Led by a huge short squeeze as sanctions were announced (led by Italian stocks of course!!)
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But - Russian stocks are roaring - up 8.6% from Friday's lows... not exactly what the politicians were hoping for...
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This is the biggest 2-day swing in 18 months for Russian stocks - imagine how much higher it will go when the US reallt gets going on sanctions.
Charts: Bloomberg