Russian shares rise to 8-month highs, rouble steady
MOSCOW Oct 15 (Reuters) - Russian stocks rose on Tuesday, led by blue-chip heavyweights, boosted by expectations that U.S. politicians will finally find a compromise to avoid a debt default.
The rouble edged up, tracking a steady global forex market, in contrast to buoyant equities. Markets are awaiting a final decision in the U.S. to raise the government's ability to borrow as a Thursday deadline draws near.
At 0808 GMT the rouble-denominated MICEX rose 1 percent to 1525 points, hitting fresh eight-month highs. The dollar-denominated RTS rose 1 percent to 1489 points.
Shares in Gazprom added 1.6 percent, while Sberbank rose 1 percent.
"This is a pure reflection of global news ... Blue chips are leading the index. From a technical point of view the critical upside boundary is at 1,530 points (for the RTS)," said Mikhail Kotov, a salesman at Alfa Bank, adding that client activity remained subdued.
Hurdles to a compromise in the U.S. budget talks still remained.
Russia is seen as a high-beta play, tending to outperform a rising market or underperform a falling one. The MSCI Russia index rose 1 percent versus a 0.9 percent pick-up in emerging markets.
The rouble was little changed following the central bank's decision to keep its key rate on hold on Monday and a successful auction of three-month funds.
The rouble edged up 0.1 percent against the dollar to 32.26 and rose by the same margin versus the euro to 43.75, leaving it 0.1 percent stronger at 37.43 against the dollar-euro basket.
The central bank provided 500 billion roubles ($15.2 billion) to the banking system at a cut-off rate of 5.76 percent on Monday. The banks are to receive the funds on Tuesday.
The banks which benefited from the auction will free up collateral for use in central bank repo operations to meet their borrowing needs, easing pressure on the money market.
One-year rouble interest rate swaps edged down to 6.63 percent from 6.67 percent on Monday.
For rouble poll data see
For Russian equities guide see
For Russian treasury bonds see
Russia in graphics: link.reuters.com/dun63s (Reporting by Maya Dyakina, editing by Jason Bush and Stephen Nisbet)
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