Market monitoring The ruble collapsed after sanctions decisions, Russia will raise its interest rates sharply – according to the expert, “almost anything can happen” if the Moscow Stock Exchange opens trading

The Moscow Stock Exchange will open the foreign exchange and money markets three hours late on Monday. On Sunday, Nordea’s chief strategist Jan von Gerich told HS that almost anything can happen if trading on the Moscow Stock Exchange starts normally on Monday.

Here the news follows market reactions to the Russian attack on Monday.

Russian economy at 9 o’clock

The Central Bank of Russia will raise its key interest rate to 20 percent. Now the interest rate has been 9.5 percent.

The purpose of raising interest rates is to try to curb the acceleration of inflation and the weakening of the ruble.

The ruble collapsed to a record low against the dollar on Monday morning.

The ruble depreciated by nearly 30 percent against the U.S. dollar after the market opened for the first time since the weekend’s sanctions decisions.

At its lowest, the dollar was worth 119 rubles. Western sanctions against Russia also depreciated the euro against the dollar, albeit by only 0.76 percent. In addition to the dollar, the Japanese yen strengthened relatively.

At 7 o’clock in the morning Finnish time for one dollar received 100 rubles.

The ruble collapsed to a record low on Thursday after Russia invaded Ukraine. So on Monday, the value of the ruble has fallen sharply even compared to before.

On Monday, the Russian central bank and the Ministry of Finance also ordered companies to sell 80 percent of their foreign exchange assets. The measures are intended to soften the impact of Western sanctions on the Russian economy.

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Moscow The stock exchange opens the foreign exchange and money markets at 10 am local time, ie 9 am Finnish time. Usually the foreign exchange market opens at 7 am local time. In addition, the currency repo market will be suspended, the stock market told news agency Reuters.

As Russia attacked Ukraine on Thursday, the general index of the Moscow Stock Exchange collapsed and the ruble weakened very sharply. Shares and the ruble recovered on Friday as state-owned banks were likely ordered to buy shares and the central bank to acquire other ruble-denominated securities.

“I consider it very possible that trading on the Moscow Stock Exchange will not normally start on Monday due to huge uncertainty. If it starts, almost anything can happen, ”said Nordea’s chief strategist Jan von Gerich To HS on Sunday.

Stock trading in Moscow is reported to begin no earlier than 3 p.m. local time. Russia’s central bank said Monday morning that it has not yet decided whether to open the stock trading at all today.

The central bank has ordered intermediaries to suspend all requests for the sale of Russian securities by foreigners.

Impact on Russian banks

The European Central Bank estimates that the European subsidiaries of Sberbank, Russia’s largest commercial bank, will go bankrupt due to the escape of deposits.

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In Europe, Sberbenk has subsidiaries in Austria, Croatia and Slovenia. Sberbank’s largest shareholder is the Russian state, and severe economic sanctions have been imposed on the bank following Russia’s invasion of Ukraine.

Raw materials market at 9.30

Late on Sunday night, the price of oil also started to rise sharply again. Brent reference grade crude oil peaked at $ 105 a barrel on Sunday night. The barrel is 159 liters.

The price of oil has risen exceptionally high in recent days. The last time oil was as expensive was in the fall of 2014.

Asian market at 8 p.m.

In Asia, stock markets opened on Monday. In the morning of Finnish time, however, the decline seemed to ease.

The CSI300 index of the Shanghai Stock Exchange, which measures large Chinese companies, fell by about 0.3 per cent in Finnish time from 8 am. The Hong Kong Stock Exchange’s Hang Seng index, on the other hand, fell 1.0 percent at the same time.

The Tokyo Nikkei Index fluctuated during the trading day, and was on a slight rise when it closed.

South Korea’s foreign ministry said on Monday that the country is banning exports of strategic products to Russia and is joining Western efforts to shut down some Russian banks from the international SWIFT payment system. This was reported by the news agency Reuters.

EU sanctions come into force

Early Monday morning, the European Union issued decisions on sanctions against the Russian central bank and the closure of Russian airspace.

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As regards the Central Bank of Russia, the decision reads as follows:

“Transactions in the management of reserves and assets with the Central Bank of Russia, including legal persons, entities or bodies acting on behalf of or at the direction of the Central Bank of Russia, shall be prohibited.”

However, the competent authorities may “authorize the transaction provided that it is strictly necessary to ensure the financial stability of the Union as a whole or of the Member State concerned”.

With regard to the closure of airspace, the decision reads as follows:

“Member States shall, in accordance with their national rules and regulations and in compliance with international law, and in particular the relevant international civil aviation agreements, prohibit aircraft operated by Russian air carriers, including air carriers operating on a common route code or quota reservation system, and non-Russian air carriers; Aircraft registered in Russia that are owned, leased or otherwise controlled by Russian natural or legal persons, entities or bodies shall land in, depart from or fly over the territory of the Union. “

However, a forced landing or overflight of a Russian plane in an emergency is allowed. Similarly, landing, take-off or overflight may be permitted with a separate permit for humanitarian reasons.

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