Morning Note /
Russia

Alfa Morning Bulletin: 29 March 2022

  • Ruble continues to strengthen

  • Markets stabilise

  • Russian stocks open strong as ruble advance continues

Alfa
29 March 2022
Published by

Ruble continues to strengthen: Trading in Russian equities extended to the entire local stock universe yesterday – RTSI -0.8% @ 823) and IMOEX (-2.2% @ 2,430) – with solid volumes. Fertilizer exporters (PHOR and AKRN) were in strong demand. Steel stocks, utilities and banks were under pressure. The ruble extended its run of strength, advancing 7% vs the dollar to 89.75 and gaining 8.7% vs the euro to 96.60. Crude prices retreated (Brent -6.7% @ 112.48) on demand-side concerns due to the lockdowns in China.

Russian stocks open strong as ruble advance continues: Russian equities have opened strongly this morning, with broad gains across all sectors led by commodity exporters. The ruble is continuing its advance and is trading at 87 versus the US dollar, against the euro is has gained 5.7% this morning and move below 100 to 98.54. Investors both domestic and global will be focused on the face-to-face talks between Kyiv and Moscow that are set to continue this week, with delegations from both countries traveling to Turkey. There are no reasons to expect any major breakthroughs this week, with the focus likely to focus on easing the humanitarian situation. Globally, an inverted yield curve in the bond markets is signaling recession and may create headwinds. Major data releases this week include the US March payroll report on Friday, China’s PMI and eurozone inflation numbers. European and US stock futures are pointing to a higher open and oil prices are steady.

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