Market Outlook


Russian equities rose last week in US dollar terms despite the drop in oil prices. There was positive news: the US is unlikely to impose new sanctions against Russia until 2019.


Russian equities fell last week on the back of the drop in broader emerging markets and oil prices. The MSCI Emerging Market index fell by 2% in US dollar terms, mainly due to the US Federal Reserve indicating that it may raise interest rates again in December. Additionally, lower oil prices exacerbated negative investment sentiment towards Russia.


Russian equities rose last week despite the drop in the price of oil. The surge of optimism on global markets helped Russia to end the week in the black. This optimism was mainly due to improved investor sentiment surrounding the hope that Sino-US trade tensions could soon ease.


Russian equities fell last week amid a global sell-off in stocks and a fall in oil prices. The MSCI Emerging Markets and MSCI World indices fell by 3.3% and 3.9%, respectively, in US dollar terms. Brent crude fell by 3.6% in US dollar terms.


The Russian equity market fell last week, partly due to pressure from news related to Sberbank and Yandex. The media reported that the state-own bank might acquire 30% of Yandex.


The Russian equity market (-0.9%) outperformed both the MSCI EM (-2%) and MSCI World (-4.1%) indices last week. This was to a large extent due to a better performance on 10-11 October when global markets experienced turmoil. Even a drop in the price of oil over those two days could not materially dent the Russian market’s resilience.


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.