As markets react in real time to Russia’s incursion into Crimea and the annexation of the Black Sea peninsula, stocks had their longest winning streak since December as President Vladimir Putin supported talks aimed at stabilizing the situation in Ukraine.
The Micex Index jumped 0.7 percent to 1,385.29, advancing for a fifth day and paring its drop since the start of Russia’s intervention in Crimea on March 1 to 4.1 percent. Putin and Didier Burkhalter, chairman of the Organization for Security and Cooperation in Europe, yesterday agreed on the need for negotiations.
The ruble strengthened 0.6 percent to 34.8335 per dollar, according to data compiled by Bloomberg, extending its gain since Feb. 28 to 3 percent. The yield on ruble-denominated bonds due February 2027 fell five basis points to 9.02 percent, paring its increase in the period to 66 basis points. The chart shows the performance of stocks, bonds and the ruble, along with indicators of Russian investment risk.
The top panel displays the value of the Micex Index of 50 Russian equities, government debt in the Bloomberg Russia Local Sovereign Bond Index, and the ruble relative to the dollar. Credit default swap rates on Russian bonds due in five years appear in the bottom panel. The yield gap between Russian debt and U.S. Treasuries and the one-month implied volatility of the ruble are also tracked.