Oil Rout Pushes RTS Index Volatility to Eight-Month High - Bloomberg:
"Volatility in Russian stocks has jumped to the highest level since the peak of the Ukraine crisis as investors weigh the impact of low oil prices on an economy already weakened by international sanctions.
The Russian Volatility Index, which reflects traders’ projections for price swings in equity futures, increased 16 percent to 46.76 on Dec. 1, the highest level since March 24, about a month after President Vladimir Putin’s move to annex Crimea, which prompted sanctions by the U.S. and its allies that have pushed Russia toward a recession. The dollar-denominated RTS stock gauge fell 1.6 percent yesterday to the lowest since July 2009.
Volatility rose for a sixth day amid speculation that the cheapest stocks in emerging markets may fall further as Russia won’t be able to rely on oil to shore up its weakening economy. Brent crude is trading near a five-year low after OPEC last week said it won’t cut output to stem falling prices as global production rises. Russia, the world’s largest energy exporter, has a 75 percent probability of sinking into a recession, according to economists surveyed by Bloomberg."
'via Blog this'
No comments:
Post a Comment