Russia RTS Futures Fall, Following S&P Lower on Growth Concerns
Russia’s RTS index futures declined, signaling shares in Moscow may fall today, as concern that the global economic recovery is slowing sent global stocks tumbling.
Futures on the dollar-denominated index expiring in June sank 0.2 percent yesterday. Contracts on OAO Rosneft, Russia’s top oil producer, fell 0.2 percent, while those on OAO Lukoil, the second-biggest, were little changed. Contracts on OAO Gazprom, the world’s largest gas producer, fell 0.4 percent.
“There is rising concern on the slowing economic recovery, especially after some U.S. data came out so much weaker than expected,” Paul Biszko, an emerging-market strategist at Royal Bank of Canada in Toronto, said in a telephone interview.
U.S stocks fell for a sixth consecutive day yesterday, the longest losing streak since February 2009, after Federal Reserve Chairman Ben S. Bernanke said on June 7 that the economic recovery has been “uneven” and “frustratingly slow.” Recent data showing weakness in the economy, including a rise in the unemployment rate to 9.1 percent in May, has increased the odds the Fed will hold the benchmark interest rate near zero into next year.
The 30-stock Micex Index (INDEXCF) advanced 0.1 percent to 1,664.83 in Moscow yesterday. Rosneft added 1.5 percent and Gazprom rose 1.2 percent after oil, Russia’s main export earner, gained. The dollar-denominated RTS Index added 0.4 percent to 1,911.41.
Stocks extended a worldwide slump yesterday after the World Bank said global gross domestic product may expand 3.2 percent this year, less than the 3.3 percent forecast in January. German industrial production unexpectedly declined for the first time in four months in April, the government said.
The Standard & Poor’s 500 Index fell 0.4 percent in New York yesterday.
The Market Vectors Russia ETF, a U.S.-traded fund that holds Russian shares, fell 0.2 percent yesterday. Lukoil’s American depositary receipts declined 0.4 percent. Gazprom’s ADRs rose 0.8 percent.
Russia, the world’s largest energy exporter, also produces metals including steel, copper, nickel, palladium and aluminum. Oil and natural gas make up a quarter of its economic output.
The Thomson Reuters/Jefferies CRB Index of 19 raw materials rose 0.6 percent. Crude oil for July delivery increased 1.7 percent to settle at $100.74 a barrel on the New York Mercantile Exchange yesterday. Prices are 40 percent higher than a year ago.
Oil rose after ministers from OPEC, which is responsible for 40 percent of global oil supply, were unable to reach a decision on changing production limits that have been in place since 2009, the group’s Secretary General Abdalla el-Badri said on June 8.
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