Russian Stock Market Surges on News of Putin-Trump Talks
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Loading... - Jocelyn Tailor
- 13 Feb 2025
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The Russian stock market experienced a significant surge on Thursday following U.S. President Donald Trump's announcement that he and Russian President Vladimir Putin had agreed to initiate ceasefire negotiations regarding the ongoing war in Ukraine.
By noon Moscow time, the Moscow Exchange (MOEX) had jumped over 6%, reaching 3,210 points, while the dollar-denominated RTS Index also climbed more than 6% to 1,080 points. Major Russian companies saw substantial gains, with shares of Novatek, Gazprom, Rostelecom, and Aeroflot rising by more than 8%.
The Russian ruble strengthened as well, appreciating 3.72% against the U.S. dollar, trading at 90.5 rubles per dollar, and gaining 3.64% against the euro, reaching 94.04 rubles per euro.
Despite the positive movement in the Russian market, global oil prices saw a slight decline, with Brent crude—a key benchmark for Russian exports—falling about 1% to $74 per barrel, and WTI crude dropping to $70.50.
The optimism surrounding a potential peace settlement for the war in Ukraine also positively impacted U.S. and European stock futures. Ovanes Oganisyan, chief analyst at Cifa Broker, noted that while investors had hoped for this scenario, many did not believe it was truly possible until now.
According to reports, the MOEX market capitalization reached 7.05 trillion rubles (approximately $77.8 billion) after adding 500 billion rubles in value on Thursday morning, reflecting the market's enthusiastic response to the news of the ceasefire negotiations.
This surge in the stock market underscores the significant impact that geopolitical developments can have on financial markets, particularly in the context of the ongoing conflict in Ukraine.
