The Russian ruble and stocks bounced back in Monday trade, after last week’s slump, with investors more optimistic about commitments coming out of the G8 summit, and ahead of the announcement of Russia’s new Cabinet, which is expected to signal the country’s economic policy direction.
As of 11:20 a.m. Moscow time (07:16 a.m. GMT), the ruble gained 4 kopecks against the dollar to 31.21 rubles, but had fallen by 7 kopecks against the euro to 39.83 following the euro’s upward correction on international markets.
The ruble-denominated MICEX edged up 0.45 percent to 1,277.21 points after hitting an 8-month low last week, while the dollar-denominated RTS rose by 0.64 percent to 1,297.66 points after last week’s slump.
At their Camp David meeting in the United States over the weekend, the G8 leaders showed support for keeping Greece, currently balancing on the brink of a sovereign default, in the eurozone and pledged measures to revitalize the global economy, which is increasingly threatened by Europe’s lingering debt crisis.
Also last week, Chinese Premier Wen Jiabao pledged additional measures to support China’s faltering economic growth, in a move welcomed by international investors.
The Russian market may be further lifted on Monday as Prime Minister Dmitry Medvedev is expected to announce the composition of his new Cabinet, which could send signals to markets about Russia’s economic priorities in the next six years.