High volatility seemed to be a hallmark of Russian stocks in the last week as president Putin proclaimed a partial mobilization of troops, further escalating the conflict in Ukraine. On the other hand, diplomats in the EU looked to cap oil prices, which have since fallen due to demand destruction caused by high inflation and a growth scare. Notable market analysts, like Christophe Barraud, Bloomberg’s top forecaster, took to Twitter to share the pain seen in the Russian MOEX, which shed 10% during the early trading hours of Monday, September 26.
Ruble advances
In a turn of events, the Russian ruble came out on top of a volatile session that has seen other currencies record losses. Apparently, the month-end tax period pushes Russian exporters to convert their foreign currency earnings into ruble, which is one of the reasons for the slight recovery in Russia’s currency, according to Alor Broker.
Referendum crash
Last week, the Russian stock exchange crashed following announcements of various ‘referendums’ in Ukrainian regions currently occupied by the Russian military. Furthermore, on September 20, Twitter was flooded with news reports of the Russian stock market halting trading on all assets. With the current mobilization news, and more reports surfacing that parts of the mobilization process is performed violently, more downside could be expected in the Russian stock market. Whether this is transitory or a more permanent occurrence will be evident in the following months. Buy stocks now with Interactive Brokers – the most advanced investment platform Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.
