Russia’s MOEX index edged up to approximately 2,475 points on Wednesday. Despite this slight increase, the market has suffered a nearly 5% drop since the start of the week due to ongoing concerns about rising geopolitical tensions impacting Russian assets.
Putin Loosens Nuclear Rules as Missile Tensions Rise
The recent exchange of long-range missiles between Russia and Ukraine, coupled with President Putin’s decision to loosen restrictions on the use of nuclear weapons, has intensified the conflict. This escalation is putting pressure on all categories of Russian investments.
Moreover, signs of a slowing economy in China—especially in manufacturing sectors—are affecting the profit outlook for major commodity producers on the Moscow Exchange. Gazprom, for example, has continued its 4% decline this week, staying close to record lows.
- Also read: France Unemployment Surges in October 2024
This slump is largely due to uncertainty over how the company will supply natural gas to Europe once its current agreement with Ukraine ends in December. Leading companies like Sberbank and Rosneft are trading near their lowest levels since April 2023.
