Morning Note /
Russia

Alfa Morning Bulletin: 12 November 2021

  • Russian stocks eked out an advance as global inflation concerns ease

  • SNGS skyrockets, gold names advance

  • Russian equities and ruble expected to extend losses on geopolitical tensions

Alfa
12 November 2021
Published by

Russian stocks eked out an advance as global inflation concerns ease: Markets steadied yesterday after the selloff triggered by hotterthan- expected US inflation numbers on Wednesday. Russian stocks pared opening losses to close with strength – RTSI (+0.1% @ 1,854) and IMOEX (+0.4% @ 4,189) – as many investors believe that inflationary pressure will eventually ease, rather than strengthen. Oil prices firmed after the recent selloff (Brent +0.3% @ 82.87). The ruble retreated sharply (-0.5% @ 71.62) after headlines reported US claims that Russia is preparing an invasion of Ukraine. But there is no obvious substance to those headlines and the situation has calmed this morning.

Russian equities and ruble expected to extend losses on geopolitical tensions: Despite the calmer market backdrop this morning as inflation worries ease, Russian equities are likely to remain under pressure due to a combination of EM risk aversion and heightened geopolitical tensions as Moscow gets dragged into the border dispute between Belarus and the EU and on US claims that Russia is planning an invasion of Ukraine. The ruble is extending last night’s losses and has conceded almost 1% in 24 hours to currently trade at 71.89 to the US dollar.

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