Russian Stock Markets fall by 10% after global oil prices crash

RT: Moscow’s main MOEX Index plunged 10 percent on Tuesday to 2,463.30 at the opening bell at 10:00am local time, according to data of the Moscow Exchange. The RTS dollar index dropped 9.86 percent to 1,133.94.

Russian stock exchanges were closed Monday for a public holiday and are now catching up with global markets, which posted their steepest falls since the 2008 financial crisis to start the week after oil prices crashed over the weekend.

The Russian currency rebounded slightly after collapsing nearly eight percent versus the US dollar on Monday, currently trading at 72.2 against the greenback and 81.38 against the euro. The ruble’s rapid depreciation was caused by the collapse in global oil prices, with the Russian budget significantly dependent on crude.

Oil prices collapsed over the weekend after the disagreement between Russia and the Organization of the Petroleum Exporting Countries (OPEC) on deeper production cuts aimed at supporting global crude prices amid falling demand due to the coronavirus outbreak.

Crude prices bounced back seven percent on Tuesday from the biggest one-day rout in nearly 30 years, as investors eye the possibility of economic stimulus. Benchmark Brent rose to $36.87 a barrel, while US West Texas Intermediate (WTI) crude was trading at $33.28 a barrel.

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