RTS Futures Gain Along With Ruble as Oil Slips : Russia Overnight

Russian stock futures rose and the
nation’s currency gained against the dollar-euro basket as oil
slipped from a 14-month high. U.S. markets were closed for the
Independence Day holiday.

Futures expiring in September on Moscow’s dollar-denominated RTS equity index advanced 0.2 percent during New
York hours yesterday to 127,220, after the 50-stock Micex Index (INDEXCF)
climbed 1.2 percent to a five-week high of 1,349.21 in Moscow.
The RTS gauge increased 1.3 percent to 1,280.61 and the ruble
rose 0.2 percent to 37.5437 against the basket used by Russia’s
central bank to manage swings that erode exporter

“Russia could be positioned well for people trying to
diversify their money out of other countries, people trying to
avoid countries with a current-account deficit as Russia has a
current-account surplus,” Daniel Salter, head of equity
strategy at Renaissance Capital in London said by phone.

Oil and natural gas contribute about 50 percent of Russian
government revenue. Crude futures fell 0.2 percent to $101.07 a
barrel in electronic trading on the New York Mercantile
Exchange, retreating from the highest level in 14 months, as the
ouster of Egypt’s president without widespread violence eased
concern of a supply disruption.

Brent crude for August settlement on the ICE Futures Europe
exchange dropped 0.2 percent to $105.52 a barrel with trading
volume 42 percent of the three-month daily average. Urals crude,
Russia’s chief export blend, slipped 0.2 percent to $105.89.

U.S. Jobs

The ruble weakened 0.2 percent to 33.192 per dollar by the
close of trading at 11:50 p.m. in Moscow, while futures showed
the currency strengthening 0.2 percent to 29.75 per dollar.

United Co. Rusal, the world’s largest aluminum producer,
rose 0.3 percent to HK$3.02 in Hong Kong trading as of 11:06
a.m. local time. The MSCI Asia Pacific Index gained 0.6 percent
today before data that may show the U.S. jobs market improved
and after European policy makers signaled borrowing costs will
be kept low.

U.S. employers added almost as many workers last month as
in May and the jobless rate probably fell, according to
Bloomberg surveys of economists. European Central Bank President
Mario Draghi pledged yesterday to keep interest rates at a
record low for an “extended period.” The rhetoric contrasts
with that of the Federal Reserve, which has fueled a global
stock and bond rout by signaling debt purchases could be scaled
back this year.

To contact the reporter on this story:
Maria Levitov in London at

To contact the editor responsible for this story:
Brendan Walsh at

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