It was an ugly morning on the Moscow exchange. Stocks tumbled 9% as US sanctions took effect.
The Moex index plummeted 8.7 per cent in mid-morning action in Moscow, leaving it on track for its heaviest dive in four years. In a sign of the breadth of the fall, only two of 46 constituents traded in positive territory on the day. The US dollar-denominated RTS gauge dropped 11.4 per cent.
2 out of 46. It happens but the selloff is broad and no doubt political Russia isn’t happy. And this on the same day that tensions in Syria (allied with Russia) have escalated.
As we’ve said, now is a time for cool heads. Both Russia and China are under pressure from the US right now but it is important that neither country feel completely hemmed in.