Aug. 15 (Bloomberg) -- Russian stocks retreated for the first time in three days on speculation the U.S. won’t expand stimulus and on concern China will struggle to sustain its pace of growth.
The Micex Index fell 1 percent to 1,448.32 by the close in Moscow. OAO Rosneft, Russia’s biggest oil producer, and OAO Magnitogorsk Iron & Steel slid 1.9 percent and 2.1 percent respectively.
The U.S. Federal Reserve will hold off from a third round of bond-buying, known as quantitative easing, in September amid better economic figures, Goldman Sachs Group Inc. said in a report. Metal companies led Chinese stocks lower after Vale SA, the world’s biggest iron-ore producer said China’s “golden years” are gone as economic growth decelerates.
“It remains the case that investors either want to see indicators of an actual recovery or indications of policy moves to reverse any signs of weakness,” Chris Weafer, chief strategist at Troika Dialog in Moscow, wrote in an e-mailed report today. “The latter remain elusive, but the former, at least in the U.S., provides enough to support a glimmer of hope.”
The Micex trades at 5.4 times estimated earnings. That compares with a multiple of 10 times for the MSCI Emerging Markets Index.
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