Micex Stock Index Trims Decline for Week: Russia Reality CheckDavid Wilson
Markets are reacting in real time to tension in Ukraine following Russia’s March incursion into Crimea and subsequent annexation of the Black Sea peninsula.
The Micex Index rose 0.6 percent to 1,384.66 at the close in Moscow, paring its drop since Feb. 28, the day before President Vladimir Putin’s incursion, to 4.2 percent. The ruble lost 0.9 percent to 39.923 per dollar, extending its decline in the period to 10 percent. The yield on local-currency bonds due February 2027 rose 13 basis points to 9.52 percent, taking the increase since the intervention to 116 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 stocks, 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.