Economics
Oil Link Fades as Gazprom Sinks on Output Call: Russia Overnight
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Russian equities in New York are breaking their correlation with oil as concern the global economic outlook is worsening outweighs the benefits of a jump in crude prices.
The Bloomberg Russia-US Equity Index of the most-traded Russian companies in the U.S. slipped 1 percent to 98.16 yesterday, pushing its 65-day correlation coefficient with New York crude to 60, the lowest since May 29, data compiled by Bloomberg show. OAO Gazprom dropped after the world’s biggest gas exporter said output will fall more than forecast this year as European demand slows. Futures expiring in December on Moscow’s RTS Index declined 0.6 percent to 147,840 in New York.