Macro update: 26/27 March 2022

It has been a crazy week for the Russian Financial markets.

We saw the opening of the Moscow Exchange (Russian Bourse) with limitations – particularly on foreign access to markets and then with the number of stocks available for trade. We also saw a banning on short selling. When trade resumed we saw the market skyrocket, before entering a downward trend for the second half of Thursday and Friday’s trade. But still seeing the MOEX finish the week in positive territory.

But why? Well I think there was some strength found in the Russian Currency the Rouble. When Putin ordered that unfriendly countries will have to pay Rubles for Gas and oil it created a greater demand for the currency. When you add in the increasing move away from the US dollar and the Euro as a trading currency, in favour of the Chinese Yuan, Russia had successfully stopped the free-fall of the value of the Ruble and at the same time, perhaps intentionally, undermined the role of the US dollar as the worlds reserve currency. It even came out that it is expected that there is going to be a greater exchange and importance in exchange between the Ruble and Yuan (RUB/CYN or CYN/RUB).

In this video I explore these events and take a look at some of the Russian stocks in the MOEX index that were trading this week including: Gazprom stock, Lukoil stock, Sberbank stock VTB Bank stock, Rosneft stock. With deeper discussion around Aeroflot stock, PIK group stock and PhosAgro stock.

Let me know your thoughts on any of this in the comments!


#russiaukraine #moex #rubles #stocks #stockmarket #forex

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