James Dennin, Kapitall: Ukraine concerns are keeping prices of European stocks very low, with volume 18% below its average for the last 30 days.
The Stoxx European index fell for a third straight day yesterday, mostly over concerns about Ukraine. Tensions there have escalated steadily throughout the year, with the German Foreign Affairs minister saying today that war could be imminent.
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Authorities have blocked flights into the Eastern section of the country, where conflict between Russian separatists and Ukranian nationalists have turned violent. Many of the Russian separatists were veterans of the Soviet Army and deeply resentful of efforts to allign Ukraine with the West.And yet, on the other side of the spectrum, there are still a number of factors that make further escalation unlikely. For one, 90% of Russian debt is held on the dollar. The US has still been tentative about issuing sanctions. Mainly because a number of US corporations have extremely valuable business deals with the Russians. Boeing (BA), for one, buys most of its titanium there. If you're skeptical about how much further Russia can afford to antagonize the West, then you probably also think that European and Russian markets, which have been ravaged by uncertainty in the region, will recover. With that in mind, we screened European stocks that trade on US exchanges, and looked for signs of increased institutional buying. That's when groups like hedge funds or pension funds buy extra shares of a company. Click on the interactive chart to view data over time. Will these European stocks get a boost from de-escalation in Ukraine? Or do you think the tensions in the region will continue to mount? Use the list below to begin your analysis.
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