The Russian ruble fell more than 20 percent yesterday, stock trading was kept closed on the Moscow Stock Exchange, and shares of Russian companies listed abroad collapsed. In Finland, the value of Finnair and Nokian Tires, which suffered from sanctions, collapsed.
Russian the invasion of Ukraine continues and sanctions hit the Russian economy. This news follows the main market reactions on Tuesday.
Russian economy at 9 o’clock
The ruble is still exceptionally cheap, but the value of the currency has started to rise since Monday’s collapse.
Yesterday, the value of the Russian ruble collapsed by more than 20 percent.
One dollar got 108,014 rubles, while on Friday the dollar got 83 rubles. The drop in percentages was the worst since 1998, he says Wall Street Journal.
Now on Tuesday morning at 9 a.m. Finnish time, one dollar gets 93 rubles
Russia’s central bank said on Monday morning it would raise its key policy rate to 20 percent. The interest rate was previously 9.5 percent. The purpose of raising interest rates is to try to curb the acceleration of inflation and the weakening of the ruble.
Russia’s central bank ordered the stock deal to remain closed all day on the Moscow Stock Exchange.
The central bank has said the stock deal will remain closed today, Tuesday, says the Wall Street Journal.
The share of Sberbank, Russia’s largest commercial bank listed on the London Stock Exchange, fell 74 percent from Friday’s closing figures.
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.
Russian energy giants Gazprom and Rosneft also collapsed on the stock exchange on Monday.
Russia’s position in the international community
Russia’s membership in the G20 needs to be reassessed, says the Australian prime minister Scott Morrison Wall Street Journal by.
He says Russia’s participation is being discussed with this year’s presidency of Indonesia.
Morrison also said Australia will provide $ 50 million in military aid to Ukraine.
Russian listed companies may be falling out of many stock indices, he says Wall Street Journal.
The American financial company MSCI said it could remove Russia from many widely monitored stock indices as sanctions, capital restrictions and a halt in trading make it more difficult for global investors to buy and sell Russian stocks.
There is no stock market panic in Asia
Tuesday’s trading day has started in Asia with a moderate rise.
Tokyo’s Nikkei index closed up about 1.2 percent.
Hong Kong’s Hang Seng index, on the other hand, rose 0.7 percent in the morning before nine in Finnish time. The CSI300 index, which follows China’s major companies, rose 0.3 percent.
Read the main financial news on Monday here:
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