'Markets may treat this as a Lehman-style shock'.
'With the significant deterioration in the Ukrainian situation, markets may treat this as a Lehman-style shock,' Kantarovich wrote in an e-mailed report. 'Revisiting the post-Lehman lows would imply downside of 50% from an index perspective.'
Bloomberg News reports Russia’s ruble-denominated Micex Index has fallen 6.6% this year. The stock gauge posted the worst monthly drop in July since 2012 as the U.S. and the European Union escalated sanctions targeting Russia’s $2 trillion economy after the downing of a passenger jet on July 17 over Ukrainian territory controlled by pro-Russian insurgents.
The Micex lost 67% in 2008, the biggest decline among benchmarks in the 30 largest stock markets, as Lehman Brothers’ collapse triggered a global recession and foreign banks cut credit. It rebounded by 120 percent in 2009, data compiled by Bloomberg show.
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