Russian Stocks Jump Most in World as ECB Drives Risk Appetite - Bloomberg

Russian Stocks Jump Most in World as ECB Drives Risk Appetite - Bloomberg:



"Russian stocks rallied the most in the world and the ruble strengthened as the European Central Bank’s plan to expand stimulus emboldened investors to take on more risk.



The dollar-based RTS Index rose 4.5 percent, while the Micex Index (INDEXCF) extended the world’s biggest gain this year. Investors who avoided Russian assets in 2014 because of the ruble’s slide are returning as oil shows signs of stabilizing near $50 a barrel and price swings in the ruble subside. The currency climbed the most since Jan. 8 and bonds rose, sending yields to a five-week low.



The ECB’s plan to boost stimulus to 60 billion euros ($69 billion) a month is leading to a hunt for bigger returns, raising the appeal of Russia, where corporate earnings as a proportion of stock prices are about 40 percent more than emerging markets as a whole. Investors are demanding higher returns for taking on the risk that the world’s largest energy exporter will lose its investment-grade credit rating amid an oil-price slump and sanctions over the Ukraine conflict."



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