Wednesday 30 July 2014

Russia ETF Drops Amid Tougher International Sanctions - Bloomberg

Russia ETF Drops Amid Tougher International Sanctions - Bloomberg:



"Russian stocks fell in New York after the U.S. and the European Union announced tougher sanctions to penalize President Vladimir Putin over his backing of rebels in Ukraine.



The Market Vectors Russia ETF (RSX), the largest U.S. exchange-traded fund tracking the nation’s companies, slid 2.1 percent to an almost three-month low of $23.85. Futures on the dollar-denominated RTS index dropped 0.8 percent after climbing as much as 1.9 percent. Contracts on OAO VTB Bank, a target of American sanctions, tumbled 2.9 percent in U.S. hours. The Bloomberg Russia-US Equity Index fell for a fourth day and the ruble weakened 0.7 percent.



The Obama administration announced penalties on VTB Bank, Bank of Moscow and the Russian Agricultural Bank along with United Shipbuilding Corp., which has ties with the Russian military. EU governments had earlier in the day agreed to bar Russian state-owned banks from selling shares or bonds in Europe and restricted the export of equipment to modernize the oil industry."



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