In recent news, there has been talk of a possible peace deal between Russia and Ukraine. Of course, this would be fantastic for the countries involved in the crisis. But, what would a peace deal mean for the stock market?
IG experts have revealed the stocks that investors should keep an eye on if a peace deal is made. The trading company says that certain stocks could soar if a deal is reached, which offers excellent trading potential for investors.
The stocks to watch if a peace deal is made
If a peace deal is arranged between Russia and Ukraine, the experts at IG say that certain stocks could soar. This is because Russia’s sanctions would be lifted, allowing Russia-exposed companies to continue with their operations.
Rolls-Royce has suffered during the Covid-19 pandemic. However, a peace deal could spark a surge in the stock’s value. This is because the company is a major manufacturer and repairer of premier aircraft engines. These services will be in high demand once a peace deal is agreed.
The Rolls-Royce share price has fallen to 94p over the past month. If movement occurs in the opposite direction, investors who get involved now could realise fantastic profits.
The International Consolidated Airlines Group (IAG) is also set to make a comeback if peace is declared. The company’s stock price will also be helped by the slow return of travel as Covid-19 restrictions are eased around the world. A peace deal is likely to reduce fears around travel during a time of war, which will ultimately help IAG to see profit in 2022.
IAG shares are currently down 17% to just 135p. As a result, investors could be persuaded to buy if there is any movement towards a peace deal.
Evraz is a mining stock that has suffered due to the war. It is one of many mining companies that have seen share prices collapse due to Russian exposure but have the potential to massively recover if a peace deal is made.
Other mining stocks to keep an eye on are Polymetal and Petropavlovsk. These stocks have recently been deleted from the FTSE Russell indices but could recover if sanctions are lifted.
Ferrexpo is an iron ore miner that has ongoing operations in Ukraine. It is currently stockpiling iron until hostilities cease, which has caused its share price to drop in value. However, a peace deal could see the iron exporter continue with its usual operations.
BP and Shell
FTSE 100 major players BP and Shell have been forced to give up their operations in Russia. This has caused the share price of both stocks to fall. However, a peace deal could allow the fuel giants to continue their overseas operations and recover the losses that they have experienced. This would also be great news for UK car owners as a return to Russia could see the price of fuel decrease.
Trading with the news is a great way to understand possible market direction. However, all investing strategies put your capital at risk and profit can never be certain. It is advised that you continue to monitor the news and watch the market closely before making any investment decisions.
The post Revealed! These are the stocks to watch if Russia and Ukraine make a peace deal appeared first on The Motley Fool UK.
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