Russian stock market climbing

RUSSIA / FSU POLITICS - In Brief 05 Nov 2020 by Alex Teddy
On November 5 the Moscow Bourse rose as it followed on the coattails of a global equities rise. It rallied even amid the US presidential nailbiter. The MOEX Index rose 1.4% in the first minutes of trading. It recouped the value it lost last week when there was a large sell off. The RTS Index (USD denominated) rose 2.5% at the opening. The RUB lost ground against the USD and EUR on November 5. But this did not undo the RUB's earlier gains. The RUB is one of the strongest performing currencies. It gained 4% against the USD in 2 days. The RUB was 92 to the EUR and 74 to the USD on the morning of November 5. This is surprising given the likelihood of a Biden win and his known anti-Russian attitude. On November 4 world markets rose but Russia was closed for a public holiday.The US has not been accusing Russia of meddling in the election. This means that new sanctions on this issue are unlikely.Russian assets will probably not keep rallying so much for long. Coronavirus, EU lockdowns and the American political situation all make for uncertainty. The stock market downtrend could recommence. A Republican majority in the US Senate would be a boost for Russian assets. It would also mean a green energy bill is improbable. Such a bill would hit oil prices and therefore the RUB.Benchmark Brent crude has returned to USD 40 per barrel lately. OPEC_ is rumoed to be about to agree another production cut in late November 2020.

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