“The Russian stock market fell at the fastest rate since March 2014

Strong falling of the Russian stock market was the result of sanctions from the U.S. Treasury against Russia and the aggravated situation in Syria

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– The Russian stock market declined on April 9 to the maximum value since March 2014 – loss index Mosberg and RTS following the results of day has made 8,3-11,4%.

Economics09 April 2018Российские business for a day has lost more than $12 to minchiate read more

18:50 index Mosberg made 2090,88 paragraph (-8,34%, a record decline since March 3, 2014), the RTS index – 1094,98 paragraph (-11,44%, a record decline since 16 December 2014), ruble prices of the main “chips” on “Moscow stock exchange” decreased 20,4%.

Due to the fact that in the course of trade, the drop in shares of “RUSAL” , JSC “Polyus” and “Mechel” exceeded 20% for these three securities were discrete auctions. The decline of ordinary shares of Sberbank is also locally exceeded 20%, but since the paper quickly rebounded, the discrete auction is not appointed.

The maximum fall on the day were shares of “RUSAL” (-20,4%), Mechel (-19,3%, the “preferred shares” fell by 15.1%), PJSC “Polyus” (-18,3%), Sberbank Russia (-17%, the “preferred shares” has lost 13.4 per cent), En+ (-16%), “Norilsk Nickel” (-14,6%), Raspadskaya (-12,1%), VTB (-9%), Russian grids (-8,9%), “Aeroflot” (-8,5%), “Yandex” (-8,1%), LUKOIL (-8,1%), Sistema (-7,1%), “Mobile TeleSystems” (-7%), “inter RAO UES” (down 6.9%), “RusGidro” (-6,8%), NOVATEK (of-6,7%), “Rosneft” (-6,3%), “FGC UES” (-5,5%), “Gazprom oil” (-4,7%), Gazprom (forecast to be minus 4.6%), Magnit (-4,5%), “Surgutneftegaz” (-2,7%), “Masuri” (-2,5%), Bashneft (-2,4%), Tatneft (Down 2.2%).

The reasons for the fall of the Russian stock market

Economy06 April 2018Удар below the listing – USA include the most stringent sanctions regimethat read more

According to experts of “Interfax-CEA”, the strong falling of the Russian stock market on Monday was the result of the aggravated situation in Syria after missile attack on the air base, “Tifor” in HOMS province. In addition, the United States accused Syrian government forces in the chemical attack in the town of Duma near Damascus, and blamed them for supporting the regime of Bashar al-Assad, Russia and Iran. It threatens a new wave of anti-Russian sanctions by the US, now because of the situation in Syria.

The market was also pressured anti-Russian sanctions imposed by the U.S. Treasury on April 6 against seven Russian businessmen, 12 companies, 17 government officials of the Russian Federation and one company of the Russian Federation on the arms trade and associated Bank. It was noted that these sanctions are imposed according to the results released in January 2018, “the Kremlin report”, which, in turn, is the implementation adopted in the US in early August, 2017 law “On counteraction to opponents of the United States through sanctions” (Countering America’s Adversaries Through Sanctions Act, CAATSA).

Other markets and indicators

Analysts point out that the sharp fall in the Russian stock market became a separate individual story, as European stock markets show overall positive dynamics in the range of 0.1-0.6%, the U.S. stock market opened with growth of main indexes of 1.5 and 2.2%. World commodity markets are also rising.

Oil prices strengthened the growth in trading on Monday, add about 2% weakening of the U.S. dollar against the Euro and several other currencies. The cost of may futures for Brent on London’s ICE Futures exchange by 18:50 Moscow time has grown on 2% – to $68,45 per barrel. Futures price of WTI for may on the new York Mercantile exchange have risen by this time by 2.1% to us $of 63.36 per barrel. ICE dollar index, which tracks the fluctuations of the dollar against six major currencies, fell during the auction by 0.3%.

At the weekend a number of high-ranking officials in the US government commented on the situation with China, and the tone of their statements has softened that somewhat reassured investors. In particular, the Secretary of the Treasury Steven Mnuchin stated that he does not expect the start of a trade war and that the United States intend to continue the discussion of controversial issues with China. Meanwhile US President Donald trump on Twitter expressed hope for peaceful settlement of the conflict and noted that, regardless of trade disputes, he will remain in friendly relations with President XI Jinping.

The total volume of shares traded on the main market of the Moscow stock exchange Monday reached a record 150.2 billion roubles (from them of 56.35 billion roubles had on ordinary shares).

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