Both the Russian equity market and the crude oil price rose last week. Crude increased by 1.3% in USD terms. The equity market increase was relatively broad, with 30 out of 45 RTS index constituents ending the week with gains.
The Russian equity market rally that started in the beginning of this year continued last week. The key market gauge in rouble terms, the MOEX index, reached an historical high, while the RTS index almost fully recovered its level from before the global stock sell-off in late January. The performance of the global MSCI World and MSCI Emerging Markets indices were more moderate, rising by just 0.1% and 1.4%, respectively.
The Russian equity market rose last week in line with the rebound in global stock markets following a similarly sized contraction the previous week. Both the MSCI Emerging Markets index and the MSCI Developed Markets index surged, by 5% and 4.2% in US dollar terms, respectively.
The Russian equity market contracted last week amid the global stock sell-off, although almost half of the contraction in US dollar terms was driven by the rouble weakening on the back of the fall in oil prices.
The Russian equity market contracted slightly over the week, mainly on the back of some correction in the oil market as the price of Brent crude slipped by 3% in USD terms. Even so, Russian equities outperformed global markets: the MSCI Emerging Markets and MSCI World indices fell by 3.3% and 3.4%, respectively, in US dollar terms over the same period.
Last week was the third in a row that the Russian equity market ended ahead. The market was supported by higher oil prices, which climbed by 2.2% in US dollar terms.
Russian equity market surged during the 4-day working week, mainly thanks to some positive corporate news and rising oil prices. The price of Brent crude rose by 2.9% in USD terms, partly due to a drop in US crude inventories. Month-to-date, Brent has been trading at around USD 68-69 per barrel, its highest level since 2014.