How Protected is JPMorgan Chase & Co. From Russian Turmoil?


JPMorgan Chase & Co. (NYSE:JPM), russia, turmoil, crude prices, exposureThe current turmoil in Russia is being seen as a huge negative for banks like JPMorgan Chase & Co. (NYSE:JPM). Many analysts believe that the risk of a default risk and a spread of a contagion spreading to other parts of the Eurozone can impact the growth trajectory of many global banking names like JP Morgan. The current upheaval in Russia is reminding traders and investors of the currency crisis of 1998 which spread like a contagion from the emerging markets to the developed economies around the globe.

Analysts believe that the only option left with Russia is to introduce capital controls which might be a huge negative and might affect the workings of banks around the world which have some form of exposure to the Russian economy. In some other news, it was reported yesterday that even though religious groups were unable to compel the bank from separating the roles of Chairman and Chief Executive Officer, they have been able to convince the bank to follow high standards of corporate governance on the back of the allegations that the bank has found itself under over the last couple of years.

When looking at the daily charts for JPMorgan Chase & Co. (NYSE:JPM), the stock has been in a strong downtrend over the last couple of weeks. The stock has fallen below its 50-day daily moving averages which is a bearish sign. The relative strength index for the stock has given a sell signal which is indicative of the shift of momentum towards the sell side. The momentum indicators for the stock have given a fresh sell signal which is a bearish sign for the near term. Analysts on the street have a consensus hold recommendation for the stock which is seen as a huge positive for the stock.

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