June 13, 2024 07:28 GMT
RUSSIA: MOEX Equity Index Falls to YTD Low
RUSSIA
- Yesterday, the US imposed blocking sanctions against the Moscow Exchange, as well as the National Settlement Depository and National Clearing Center. Consequently, the exchange halted trading of dollars and euros, which accounted for over 50% of forex trading in May. Vedomosti report that trading in the "toxic" currencies will now move to the far less liquid and transparent over-the-counter market. The central bank said it will set official exchange rates for them by alternative means.
- The MOEX equity index has started the session 1.4% in the red, placing it at its lowest level of the year. The index has now recorded a sharp ~13% pullback from the mid-May highs.
- Although capital investment in Russia saw strong growth in Q1, leading indicators indicate growth will slow dramatically in Q2, Kommersant report. The economy ministry expects imports of investment goods to start growing again in Q3, but the new wave of US sanctions cast doubt over the likelihood of this scenario.
- The Bank of Russia will report trade balance data for April at 14:00BST/16:00 local time.
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