Morning Note /
Russia

Alfa Morning Bulletin: 18 March 2022

  • With the Russian equity market remaining closed today, attention is on the Bank of Russia policy rate meeting

  • The price of oil soared on Thursday as talks between Kyiv and Moscow showed no signs of progress

  • Russia made a $117 mln interest payment on Eurobonds – NEUTRAL

Alfa
18 March 2022
Published by

With the Russian equity market remaining closed today, attention from an investment perspective is on the Bank of Russia policy rate meeting at 13.30 MSK. Central bank Governor Elvira Nabiullina is expected to keep the key rate at 20%. She does not plan a press conference today. As we go to press, President Putin has re-nominated Nabiullina to head the Russian Central Bank for another term. At 15.00 MSK President Putin is planning to make an address to the nation. That coincides with the 8th anniversary of Crimea. U.S. President Joe Biden is set to speak with Chinese President Xi Jinping on Friday, with the two leaders set to discuss topics such as Russia’s war against Ukraine and competition between the two countries, according to the White House. The S&P ratings agency yesterday lowered Russia's rating to 'CC' from 'CCC-', as the country reported difficulties meeting debt payments due on its dollar denominated 2023 and 2043 Eurobonds. Yesterday the ruble strengthened 4.7% vs dollar to 103.15; gained 3.5% vs euro to 113.71. The price of oil soared on Thursday (Brent +8.8% @ 106.64) as talks between Kyiv and Moscow showed no signs of progress. Crude prices continue to climb this morning with Brent trading at $109.00/bbl. Asian markets are steady this morning, however US and European stock futures are pointing to a lower open as oil prices push higher raising inflation concerns and peace talks between Russia and Ukraine show little sign of progress.

KEY NEWS

Russia made a $117 mln interest payment on Eurobonds – NEUTRAL

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