Well, this is hardly news anymore, but Moscow’s stock markets were closed again this morning. The news will obviously be in future when they are open. Russia’s Micex Stock Exchange and RTS suspended trading this morning because their “technical indexes” a measure of aggregate stock prices, fell more than 10 percent on opening.

Russian global depositary receipts plunged in London trading following the decision, led by steelmakers. The FTSE Russia IOB Index, a measure of Russian depositary receipts trading in London, sank 11 percent to 312.83 at 9:36 a.m. in London, the lowest in almost five years. OAO Severstal, Russia’s biggest steelmaker, fell 23 percent to $2.50. Evraz Group SA, the second-largest steelmaker, dropped 15 percent to $10.60, or 92 percent below its May 16 high.

The Ruble Slides

The ruble fell to an 18-month low against the dollar this morning even while it strengthened for a second straight day versus an ever weaker euro.

The currency, which policy makers manage against a dollar- euro basket in an attempt to protect the competitiveness of exporters, fell as much as 0.6 percent to 27.3738 per dollar, the weakest since April 2006. It was at 27.3624 by 11:01 a.m. in Moscow, from 27.1991 late on Oct. 24. The ruble jumped 0.9 percent to 34.0292 per euro, the strongest in almost two years.

Bank Rossii, Russia’s central bank, buys and sells foreign currency reserves to keep the ruble within a trading band against the basket. The basket rate is calculated by multiplying the ruble’s rate to the dollar by 0.55, the euro rate by 0.45, then adding them together. Russia’s currency was little changed at 30.3757 against the basket, from 30.4096 at the end of last week, when it strengthened just 0.1 percent. The 30.40 level is regarded by most analysts as the weakest end of the central bank’s trading band. Bank Rossii sold almost $11 billion supporting the ruble against the basket last week, according to estimates by Moscow’s MDM Bank.

Crude oil, Russia’s biggest export earner, fell for a second day, extending its decline from a July 11 record of $142.27 to 57 percent. Urals crude, the nation’s main export blend, slid 10 percent last week to $59.93, below the $70 average.

Last 5 posts by Edward Hugh

• Are Russia's Consumers Getting "Carried Away" With Themselves? - November 22nd, 2009
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