Rouble finished the quarter with highest growth across the globe.
First three months of this year appeared to be favourable for Russian assets as Rouble overperforms the currency market in relation to the US dollar, and Russian Federal borrowing obligations’ yield could drop after three-quarters growth.
The exchange rate fell for 4.2 roubles per one US dollar (6%) in the period of January-April 2019 in the back of capital inflow in Russian government debt securities from non-residential investors.
Concerns over the sanctionary pressure were lowered, which supported the currency. Central Bank of Russian Federation took the monetary policy tightening off the table, creating sustainable demand for bonds and setting an important additional channel of rouble’s strengthening, Tatiana Evdokimova, head analyst for Nordea Bank, stated in Moscow. “If risk-assets sentiment stopped worsening, the rouble would have more chances for further strengthening, she wrote via email.
Brent Oil price was noticed above $68 per barrel again, charting highest quarterly performance since 2009. Emerging markets assets finish the first quarter with the most massive rally since 2017.
Several market quotes at 02:14 PM Moscow time:
Moscow Exchange Index: +0.5% to 2504.59; RTS: +1% to 1218,98
Moscow Exchange gainers: Rusneft +2,2%, Nornickel +2,1%, FSK EEC +1,2%
Moscow Exchange loosers: Magnit -1,1%, Sistema -0,9%, Rusal -0,7%
MSCI Emerging Markets Index +0,9% to 1054,7
S&P 500 Futures +0,1% to 2822,6
Brent Oil +1,2% to $68,6 pbl
USD/RUB +0,3% to 64,7425, EUR/RUB +0,2% до 72,7
Russian Bonds Yield 26212 -3 bp to 8,15%
US 10-year Treasury yield +3 bp to 2,42%
Russia42 Eurobonds yield -1 bp to 5%
Turkey would not disrupt EM quarterly performance; New York requested Nordea, SEB deal details with Danske; Wells Fargo head Sloan resigns on the back of scandals; May is trying to make the last attempt to avoid hard Brexit; It’s too early to consider a cut by the Fed: Bullard.