Wednesday 14 January 2015

Deepening Oil Drop Sends Russian ETF Investors Scurrying Away - Bloomberg

Deepening Oil Drop Sends Russian ETF Investors Scurrying Away - Bloomberg:



"The largest exchange-traded fund tracking Russian stocks is opening the year with the highest redemptions in a month amid the widest price swings since 2009 as oil extends its rout and the ruble plummets.



Shares in the $1.4 billion Market Vectors Russia ETF (RSX) ended unchanged at $14.77 after dropping as much as 2.7 percent. Asset managers pulled $36.9 million from the fund on Monday, the biggest outflow since mid-December, data compiled by Bloomberg show. The Bloomberg Russia-US Equity Index of the most-traded Russian stocks fell 1 percent after the dollar-denominated RTS Index declined to the lowest in four weeks. The ruble tumbled 3.2 percent against the dollar.



Brent crude, the oil grade traders use to price Russia’s main export blend, traded below the U.S. benchmark for the first time in 1 1/2 years amid a weakening European economy. The world’s biggest energy exporter is facing the first contraction since 2009 as sanctions linked to the Ukraine conflict stoke the worst currency crisis in 16 years. The fund’s 30-day volatility held near 83, the highest level since March 2009, as Russian markets that had either been closed or trading with light volumes in the past two weeks reopened."



'via Blog this'

No comments:

Post a Comment