Morning Note /
Russia

Alfa Morning Bulletin: 10 December 2021

  • Russian equities found relief and gained ground

  • Omicron concerns send global markets lower

  • Russia on the back foot as global sentiment sours

Alfa
10 December 2021
Published byAlfa

Russian equities found relief and gained ground: The global mood soured yesterday as concerns over restrictions in parts of Europe to contain the more transmissive Omicron strain of Covid overshadowed optimism on the efficacy of the vaccines. That said, however, Russian equities finally found some respite having lagged over recent sessions – RTSI (+1.2% @ 1,632) and IMOEX (+1.1% @ 3,814) – due to progress deescalating geopolitical tensions. The gains were concentrated in cyclical stocks. The ruble was steady (-0.2% @ 73.73). Crude prices pulled back (Brent -1.9% @ 74.42) on concerns over Covid.

Russia on the back foot as global sentiment sours: Russian equities can be expected to trace global markets lower today as concerns grow over the transmissiveness of the new Covid variant. There is also a mood of caution ahead of US inflation data today and next week’s Federal Reserve meeting. The lower oil price also creates headwinds for Russian stocks. However, following the selling pressure of earlier this week and the improvements on the geopolitical front, any losses should be measured and minimal.

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