Ruble, stocks rise as world oil prices grow

The ruble regained some of its losses earlier this week on Thursday amid a positive external background and higher world oil prices.

The ruble exchange rate grew 13 kopecks against the dollar to 32.51 on Thursday in MICEX trade as of 11:30 Moscow time.

The value of the bi-currency basket, comprising $0.55 and 0.45 euros, fell 4 kopecks to 37.37 rubles as of 10:01 a.m. Moscow time.

Global prices for Brent crude grew to $102.40 per barrel on Thursday from nearly $101.50 on Wednesday, supporting the Russian currency which heavily depends on international oil price fluctuations.

Market watchers were not convinced, however, that the ruble’s fortunes had reversed for long.

“Investors will want to hear from the European Central Bank that, like the US Fed, it is considering market support, and also a good payrolls report in the US tomorrow before allowing themselves that optimistic indulgence. Today’s gains will therefore be more of a trader’s mark-up than a genuine buyer’s move,” Troika Dialog said in its research note.

The Russian ruble-denominated RTS stock index grew 3.57 percent to 1,260.64 by 11:31 Moscow time, while the index of the dollar-denominated MICEX exchange went up 3.97 percent to 1,315.95.

In Europe, the FTSE100 rose 0.64 percent to 5,020.72, the DAX grew 0.99 percent to 5,527.01, the CAC40 went up 1.23 percent to 3,010.55 as of 11:32 Moscow time.

“The main investor focus today will be the ECB policy meeting and, in particular, the after-meeting press conference. ECB President Jean-Claude Trichet, now in his last month before retiring, will be pressed to comment on the ECB’s position concerning the possibility of adding additional stimuli to the regional economy and how it sees the threat level to solvency in the banking sector,” Troika Dialog said.

 

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