Market Outlook


The Russian equity market fell last week. At the outset of the week, the market rose, as it had in the preceding weeks. However, it then reversed direction as the US, the UK and the Netherlands released new accusations against several Russian individuals regarding their alleged involvement in cyber intelligence operations. Due to the rouble depreciation amid the news the market decline in rouble terms was much less pronounced than in US dollar terms. The surge in the Brent crude price to new multiyear highs – by 1.5% in US dollar terms – failed to support either the market or the rouble.


For the second consecutive week the Russian equity market hit a record high in rouble terms. In US dollar terms, its performance was also solid, outpacing weaker global and emerging markets. The MSCI World and MSCI EM indices contracted by 0.7% and 0.3%, respectively, in US dollar terms.


The Russian equity market surged to a historical high in rouble terms last week. In US dollar terms, the positive performance was even more pronounced.


The Russian equities market rose last week. The market’s surge in US dollar terms was mainly driven by the stronger rouble. It appreciated amid rising oil prices and supportive decisions by the Central Bank of Russia. The regulator increased its key rate by 25bp and prolonged a pause in purchasing foreign currency until the end of the year.


Global equity markets declined last week, with the MSCI World and MSCI EM indices dropping by 1.7% and 3.1% respectively in US dollar terms.


The Russian equity market rose last week, supported by a 2.9% upswing in oil prices in USD terms. As a result, oil and gas companies contributed the most to the overall market performance. Oil prices were supported by EIA data that showed a fall in US crude oil inventories and lower oil exports from Iran.


The Russian equity market rose by 1.1% in USD terms last week supported by oil prices, which in rouble terms reached new absolute highs of more than RUB 5 000 per barrel. Comments from the Russian central bank regarding the pause in currency purchases until the end of September also helped the market’s performance in USD terms.


The Russian equity market declined last week as the price of Brent crude corrected downward by 1.5% in US dollar terms on the back of the US Energy Information Authority (EIA) reporting an unexpected increase in US crude stockpiles. In addition, some pressure might have come from the continuing discussions in the US Congress of sanctions against Russia and from the broader emerging market sell-off.