FX.co ★ Russian Stocks Erase July Losses

In late July, the MOEX Russia Index reached 2,820, successfully reversing the significant losses experienced earlier in the month. This performance underscores a notable independence from global equity market trends and a minimal reaction to worldwide macroeconomic developments. The persistent impact of Western sanctions on Russia has isolated its financial sector from global influences. As a result, capital flow projections within Russia have remained relatively unaffected by potential US tariffs and the economic instability in Europe.

Throughout the year, banks have stood out as strong performers on the Moscow exchange, with Sberbank's valuation nearing levels seen before the Ukraine conflict. This resilience was bolstered by increased financial collaboration with China and the Middle East. Additionally, the Central Bank of Russia indicated its willingness to offer bailouts to commercial banks should issues with non-performing loans intensify. Conversely, energy giants such as Lukoil, Rosneft, and Gazprom have suffered significant losses due to decreased energy demand from China and stricter European sanctions affecting tanker operations, adversely impacting their sales.