Russian Stock Market

Russian Stock Market Slumps, Marking The Worst Day in 8 years

As the Russian and Ukraine Crisis reaches a critical point, the countries benchmark MOEX Russia equity index closed yesterday’s trading session down 12%. The fall marks Russia’s biggest drop since Russia’s annexation of Crimea in March 2014

The Russian Currency Ruble, has also taken a hit currently buying 0.013 United States Dollars per 1 Ruble. Goldman Sachs believe the Ruble could fall further, as it currently remains 10% overvalued. The spike in volatility comes at a critical point in the Ukraine Border crisis, as Moscow has sent peace keeping troops to breakaway republics in Ukraine.

Why is the MOEX Index falling?

Today, the Guardian reported that the United States, alongside its allies will announce new sanctions on Russia after Moscow recognised the republics of Donetsk and Luhansk in eastern Ukraine as independent and sent troops there. Further developments suggest an invasion may already be underway as confirmed by UK Health Secretary Sajid Javid.

Russia stock market
closeup smartphone with Moscow Exchange logo. Moscow, Russia – March 17, 2019

Russia is the key antagonist in the Ukraine border crisis, and the possible economic implications of a Ukraine invasion on Russia, including economic sanctions, is driving investors away. The uncertainty about the current crisis is also increasing market volatility on a global scale, as investors weigh up the risk reward thesis on potential outcomes of the conflict.

The MOEX Russia Index is currently trading 22% lower over the past 5 trading sessions, and is expected to drop lower as tensions rise in Europe. The MOEX Russia Index, formerly MICEX Index, is the main ruble-denominated benchmark of the Russian stock market. The index was established on 22 September 1997.

We will continue to update our viewers on the ongoing Russia-Ukraine Crisis and its implications both on Russia’s markets, but more importantly the US equity markets. How do you think the Russian Ukraine Crisis will impact the markets this week? Let us know in the comment section below.

Written by Tyger Fitzpatrick, Founder of Youth Investment Group.

The information above is not financial advice. Youth Investment Group has no liability for personal financial interests or investment decisions. You should make your own investment decisions based upon your own research and what you believe is best for you.

Subscribe to our Youtube channel here.

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.