Morning Note /

Alfa Morning Bulletin: 30 March 2022

  • Russia stocks and the ruble continue to regain strength

  • Peace talks stoke optimism among global investors

  • Russian assets recover, ignoring gloomy backdrop

30 March 2022
Published byAlfa

Russia stocks and the ruble continue to regain strength: Russian equities advanced further on Tuesday – RTSI (+7.1% @ 882) and IMOEX (-0.9% @ 2,408) – with a mixed performance across the sectors. ALFT (+16%) led the charge, other outperformers included FIXP, PHOR, NVTK, TATN, YNDX, POLY and ROSN. Exporters remained in the ascendancy. The ruble continued to strengthen, gaining 5.3% vs the dollar to 85.25 and adding 2.7% vs the euro to 94.10. There was optimism among investors on the prospects for a de-escalation in Ukraine. That triggered a pullback in commodity prices and Brent conceded 2.0% to $110.23/bbl.

Russian assets recover, ignoring gloomy backdrop: Russian equities and the ruble have opened with strength again this morning. While there remains a bias towards commodity exports, a broader stock and sector rally has developed. The global backdrop remains fragile: US and European stocks futures have pared overnight gains and are pointing to a lower open today. Despite some optimism from signs of progress in talks between Russia and Ukraine, there is growing concern over inflation and the inverted yield curve in the US, as bond investors bet that aggressive monetary tightening by the Federal Reserve could hurt the US economy over the longer term. Supply tightness is keeping crude prices firm – Brent is up 2.2% at $112.66/bbl. The spo


Russia makes a $102 mln coupon payment on Eurobonds – NEUTRAL