Morning Note /

Alfa Morning Bulletin: 5 April 2022

  • Russian stocks and ruble tick higher

  • Markets eke out gains but sentiment is fragile

  • Russian assets advance steadily oblivious to sanctions noise

5 April 2022
Published byAlfa

Russian stocks and ruble tick higher: Russian equities ticked higher yesterday adding to the gains that have been made since the market reopened almost two weeks ago – RTSI +1.9% @ 1,051) and IMOEX (+1.0% @ 2,787). The ruble strengthened slightly (+0.1% @ 84.00) and looks to have found a new trading range around 80-85 versus the US dollar. Oil prices rebounded yesterday (Brent +1.1% @ 108.70) as the prospect of further sanctions looms for Russia.

Russian assets advance steadily oblivious to sanctions noise: Russian equities have opened this morning in positive territory and the upward trend can be expected to continue. The ruble remains firm. Overnight the US stopped the Russian government from paying holders of its sovereign debt from reserves held at American banks, in a move aimed to ratchet up pressure on Moscow and eat into its holdings of US dollars. Under sanctions that were put in place on 24 February, foreign currency reserves held by the Russian central bank at US financial institutions have been frozen. However, the US Treasury Department had been allowing the Russian government to use those funds to make coupon payments on dollar-denominated sovereign debt on a case-bycase basis. Oil prices are trading higher this morning as the US and the EU prepare new sanctions against Russia which are expected to be unveiled this week.


US bans Russia from making sovereign debt payments in dollars from US accounts – NEGATIVE

Russian retailers might suspend expansion plans

MOEX: March 2022 trading results