Russian stocks breached a bearish threshold that signals they may extend declines as China’s equity-market rout spread across the world, wiping out oil’s gains this year.
The benchmark Micex Index fell as much as 2.5 percent to 1,573.98, bringing it temporarily below the 200-day moving average of 1,585.7 for the first time since December, data compiled by Bloomberg show. The 50-stock measure traded 1.2 percent lower by 5:58 p.m. in Moscow, trimming its 2015 advance to 14 percent. Brent crude traded within 0.8 percent of a three-month low.
By exerting pressure on oil, the selloff gripping China’s stock market is threatening to sour Russia’s economic outlook as the world’s largest energy exporter faces its first recession since 2009. Bloomberg’s Commodity Index touched the lowest level since March on Tuesday as raw materials from metals to crude slumped on concern demand is stalling in China and investors confronted the prospect Greece may quit the euro region.
“The situation in China is important for Russia through commodities,” Vadim Bit-Avragim, a money manager at Kapital Asset Management LLC in Moscow, which oversees the equivalent of about $3.05 billion, said by phone. “Everything will depend on what’s going to happen in China and Greece. If the situation improves, the Russian market might rebound.”
China’s securities regulator banned major shareholders, corporate executives and directors from selling any of their stakes for six months, the latest effort to stop a $3.5 trillion rout in the nation’s equity market. That’s damping demand for raw materials.