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Russian Stocks’ Oil Link Fades on Ukraine Outlook

Russian equities are breaking their correlation with oil as a rally spurred by easing tension in Ukraine outweighs slumping crude prices.

The dollar-denominated RTS stock index rose 0.9 percent in Moscow yesterday, adding to its biggest weekly gain in three months, even as oil sank to the lowest since January. That pushed their 50-day correlation to minus 0.22, near the lowest level since March, when President Vladimir Putin annexed the Black Sea Crimea peninsula from Ukraine. A reading of 1 implies two securities are trading in lockstep, while minus 1 signals the opposite.