Russia: How will Wagner Group's failed coup impact markets? - Yahoo Finance

Russia: How will Wagner Group's failed coup impact markets?

Russian President Vladimir Putin had a potential challenge to his regime led by Wagner Group leader Yevgeny Prigozhin. Yahoo Finance discussed the impact on markets, including commodities, energy, and oil, with various experts, analysts, and strategists.

Allison Fedirka, Geopolitical Futures Director of Analysis, broke down the biggest takeaways and impact on global markets. Fedirka said, "The fact that the coup did not work, it's not entirely clear that the Wagner Group will come back and fight with Russia ... until people can be certain that Putin is the man in charge ... the idea of a negotiated settlement with Russia is now just off the table."

Tony Dwyer, Canaccord Genuity Chief Market Strategist, also discussed the potential market reaction. Dwyer said, "What I do know is companies and lenders will not lend money to lose money ... that ultimately should have some kind of impact on economic growth, and therefore the markets."

Yahoo Finance senior columnist Rick Newman expressed his surprise to the rebellion. Newman said, "Just a mind-blowing series of developments in Russia, and many analysts think it's not close to being over yet."

Yahoo Finance markets reporter Jared Blikre broke down oil prices with regard to the news of the failed coup. Blikre said, "The price action since the open yesterday and Sunday evening, really not that volatile."

Yahoo Finance markets reporter Ines Ferre also discussed oil prices and commodities outlook. Ferre said, "I was able to reach out to Andy Lipow of Lipow Oil Associates ... if this does lead to a civil war, if this is the beginning of the end for Vladimir Putin, you could see a disruption when it comes to the oil coming out of Russia."

Mike McGlone, Bloomberg Intelligence Senior Macro Strategist, discussed his outlook for oil and energy markets with a global recession looming. McGlone said, "To me, it's tilting the whole world toward recession ... I see crude oil as more likely to head toward 50, maybe even 40, based on what's already happened."

Video highlights:

00:00:03 - Geopolitical Futures Director of Analysis Allison Fedirka

00:00:32 - Canaccord Genuity Chief Market Strategist Tony Dwyer

00:00:46 - Yahoo Finance senior columnist Rick Newman

00:00:56 - Yahoo Finance markets reporter Jared Blikre

00:01:12 - Yahoo Finance markets reporter Ines Ferre

00:01:39 - Bloomberg Intelligence Senior Macro Strategist Mike McGlone

Video Transcript

[AUDIO LOGO]

ALLISON FEDIRKA: Prior to the weekend events, the Kremlin and Wagner Group worked collaboratively. The fact that the coup did not work, it's not entirely clear if Wagner will come back and fight with Russia. And then, once you have something like this happen, people are questioning the staying power of Putin. So until people can be certain that Putin is the man in charge and is the person that they can talk to, the idea of a negotiated settlement with Russia is now just off the table.

TONY DWYER: I didn't see it coming. I have no idea what it means. What I do know is companies and lenders will not lend money to lose money. And with all the yield curves inverted, that ultimately should have some kind of impact on economic growth. And therefore, the markets.

RICK NEWMAN: Is Vladimir Putin's leadership falling apart? It's just a mind-blowing series of developments in Russia. And many analysts think it's not close to being over yet.

JARED BLIKRE: I think the real interesting news that's really peaking, catching trader's attention is what's happening in Russia. And that's with the potential coup on Vladimir Putin. Now I'm taking a look at the YFi Interactive. The price action since the open yesterday and Sunday evening, really not that volatile.

INES FERRE: I was able to reach out to Andy Lipow of Lipow Oil Associates. If this does lead to a Civil War, if this is the beginning of the end for Vladimir Putin, you could see a disruption when it comes to the oil coming out of Russia. Although there is a contrarian view, which is that if Vladimir Putin continues with his strategy, you could see more supply of oil coming into the market and this would be bearish for the oil markets.

MIKE MCGLONE: China's leader made a major mistake of his unlimited friendship with Mr Putin. And what's that doing overall? To me, it's tilting the whole world towards recession. China is having a problem. With all that data it's disappointing. That's the body in motion. You have to ask yourself, what stops this? So I say, crude oil is more likely to head towards 50, maybe even 40, priced on what happened.