Tuesday 10 December 2019

Russia's markets crash as Ukraine conflict looms

Pro-Russian protesters gather at a barricade near the police headquarters in Slaviansk April 13, 2014
Pro-Russian protesters gather at a barricade near the police headquarters in Slaviansk April 13, 2014

Russia's stock market fell and the rouble weakened in early trading on Monday after tension escalated in Ukraine over the weekend.

At 0633 GMT the rouble-denominated MICEX index was down 1.2 percent to 1,346 points, while the dollar-denominated RTS index fell 1.9 percent to 1,178 points.

"The escalation sharply increases risks of an all-out civil war in Ukraine," said Bank of America Merrill Lynch analysts in a research note. "Even though it is still not our baseline scenario, the entire development is clearly negative for the market (and raises) renewed fears of another wave of sanctions from the West."

The rouble was 1 percent weaker at 36 against the dollar and 0.7 percent weaker at 49.83 against the euro.

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