The Russian economy has been rocked by the coronavirus outbreak, and the breakdown of the OPEC+ oil production pact between Russia and Saudi Arabia. The turmoil has shocked traders around the world and resulted in sharp volatility on the Russian stock markets and swings in the value of the ruble — both of which are down around 20% since the start of the year.
The latest on the markets, as of 18.00 Moscow-time March 16:
— The ruble fell again Monday, down 2.5% to start off the week, trading at 74.2 against the U.S. dollar. Earlier in the day, the currency fellow the benchmark level of 75 to the dollar.
— The Russian stock market also lost 5% as global stocks plummeted following an emergency rate cut from the U.S. Federal Reserve announced late Sunday. The RTS index, which is denominated in dollars, stood at 938 points (-5.4%), while the ruble-based MOEX Index was at 2,216 (-4.3%).
— Oil slipped to a fresh multi-year lows, with Brent crude falling 10% below $31 a barrel. Edward Moya, analyst at OANDO said: “Oil’s worst-case scenario seems to be coming true. The coronavirus is paralyzing economies across the world and no-one has any clue how much worse it will get. You can basically start pricing a complete collapse in crude demand for much of the world.”