The Russian economy has been rocked by the coronavirus outbreak, and analysts fear the new OPEC+ oil production pact between Russia and Saudi Arabia will not be enough to address a historic fall in demand, The Moscow Times writes.
The turmoil has shocked traders around the world and resulted in sharp volatility on the Russian stock markets and swings in the value of the ruble.
The Russian markets opened quietly Monday morning, despite oil prices once again coming under pressure. Brent crude oil lost 5% overnight and is hovering just above $20 a barrel.
The ruble is flat on its Friday closing level of 74.5 against the U.S. dollar.
Stock markets ticked up slightly Monday morning, with the RTS Index adding 0.9% and the MOEX Index climbing 0.7%.
The Russian Central Bank cut interest rates to 5.5% from 6% Friday afternoon, warning Russia would face a deep recession this year and that further rate cuts were to come.
— Aside from the dovish tones, the cut itself was already priced in. The ruble strengthened immediately on the decision and then eased back slightly to stand up 0.3% for the day at 74.6 against the U.S. dollar.
— Stock markets were once again in the red, with the RTS Index down 1.6% and the MOEX Index off by 1.4%. After sinking heavily at the start of the week before clawing back, the Russian markets are largely unchanged over this week’s trading.