15.08.201400:15:41UTC+00Emerging stocks gain on Putin speech

Emerging-market stocks is on its four-day winning streak as the geopolitical tension in Ukraine eased as indicated by Russian President Vladimir Putin’s speech in a morning meeting. In the morning speech of President Vladimir Putin where he said that all efforts are being directed to ending the conflict as soon as possible “so that the blood can stop flowing in Ukraine” calmed the European markets after a stalling in the economic recovery as seen in their GDP reports, affecting also the emerging-market stocks.

The MSCI Emerging Markets Index added 0.2% to 1,072.61 for a total of 2.6% for the whole four days of advance of the gauge.

Russia’s Micex Index reached its highest level in three weeks. Brazil’s Ibovespa Index rebounded from a two-day losing streak following the reports that Brazilian president Dilma Rousseff’s chances to be re-elected fell as the death of one of the presidential candidates came. LPP rose as the Polish clothing retailer was driven by the announcement by MSCI Inc. that its stocks shall be added to the developing-nation gauge. South Korea’s won advance the most in the Asian currencies following central bank cuts while Russia’s ruble advanced by 0.1%. Bloomberg’s gauge that tracked 20 developing nation currencies indicated a 0.3% advance for a second straight day gain.

The speech of Russian President Vladimir Putin in Crimea greatly affected the world markets who have been keeping an eye on the geopolitical situation in Ukraine. Speculations upon speculations have been piled up as to what the intentions of Russia really are. Putin’s speech greatly eased the concerns of investors as it cleared up some conjectures with his intentions of ending conflict as soon as possible to stop the bloodshed. Putin also commented that Russia should not isolate itself from the outside world.

Strategist at Danske Bank A/S, Vladimir Miklashevsky commented to Bloomberg that the speech of the Russian president put the concerns of investors at ease which in turn gives hope that the markets won’t be seeing a worsening geopolitical situation.